Flagstaff Housing Market Struggles with High Prices and Low Income for Buyers

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.