Flagstaff's Housing Commission meeting on July 24, 2025, highlighted pressing challenges in the local housing market, particularly for first-time and low-income buyers. The meeting revealed that the median price for single-family homes in Flagstaff has reached a staggering $787,000, necessitating an annual income of at least $147,000 for buyers with no debt to qualify for a conventional loan. This figure rises to between $165,000 and $177,000 when considering down payment assistance programs, which impose stricter debt-to-income ratios.

The discussion also covered manufactured homes, with a median price of $418,000, where potential buyers would need an income ranging from $78,000 to $100,000, depending on their debt levels. Condominiums, averaging $345,000, present similar challenges, requiring incomes between $135,000 and $147,000 for qualification.

The meeting underscored the impact of elevated interest rates on purchasing power, with current mortgage rates around 6.875%. The commission noted that while a decrease in rates could improve borrowing capacity, many lower-income residents remain unable to afford homes due to the high prices and insufficient inventory. The average household income in Flagstaff is just under $70,000, which is inadequate for most housing options available.

Commission members expressed concern over the lack of affordable housing and the barriers faced by essential workers and single-income households. Many residents are being forced to seek housing outside of Flagstaff, commuting from nearby towns like Winslow and Cottonwood to find more affordable options.

The meeting concluded with a call for increased support and innovative solutions to address the housing crisis, emphasizing the need for more accessible financing options and a broader range of affordable housing developments to meet the community's needs.