Flagstaff Real Estate Market Shows Low Inventory and Rising Prices in 2025

The Flagstaff Housing Commission convened on July 24, 2025, to discuss the current state of the housing market in Flagstaff, Arizona. The meeting focused on sales and inventory data from the Northern Arizona Multiple Listing Service (MLS), highlighting significant trends and challenges in the local housing landscape.

The session began with a presentation on the latest MLS data, revealing that single-family home sales have increased by 5% compared to the previous year, with a total of 791 sales recorded. Townhomes saw a slight increase in median price to $602, while condominiums experienced a more substantial 7% rise, reaching a median price of $349,000. The report noted that homes priced under $500,000 are considered affordable, yet they represent only 25% of the current inventory, indicating a severe shortage of affordable housing options.

The discussion also addressed the impact of cash buyers on the market, which account for approximately 30% of all transactions. This trend has made it increasingly difficult for local buyers to compete. Additionally, the data indicated a shift in buyer demographics, with 71% of purchases in 2025 coming from local buyers, up from 63% in 2024. This change is attributed to rising interest rates, which have deterred vacation home buyers.

The commission highlighted the alarming lack of inventory, particularly for homes priced under $400,000, with no single-family homes available in that range. The current market features only six single-family homes for sale between $400,000 and $600,000, and a total of 13 homes priced under $500,000. The scarcity of affordable options is further compounded by the limited availability of townhomes and condominiums, with zero townhomes for sale under $300,000.

The meeting concluded with a consensus on the urgent need to increase the housing supply to address the ongoing affordability crisis. The commission emphasized that even a significant increase in inventory would only begin to alleviate the challenges faced by potential homebuyers in Flagstaff. The next steps will involve continued monitoring of market trends and exploring strategies to enhance housing availability in the region.