Economic Collaborative of Northern Arizona (ECoNA) — The Home Rental Landscape in Flagstaff

by Community Contributor • January 29, 2024 • Comments Off

Good afternoon,

According to statistics from the Northern Arizona Association of Realtors, the surge in home prices in Flagstaff slowed down dramatically in 2023. After increases of 11.8% in 2020, 25.2% in 2021, and 13.6% in 2022, the median sales price for a residential home grew 1.3% in the past year – from $618,697 in 2022 to $626,500 last year.

Although the latest figures may indicate that the price to buy a home has reached a plateau, rental property prices are still climbing.

A survey of apartment complexes in Flagstaff conducted by Housing Solutions of Northern Arizona this past fall indicates that households will spend an average of $1,971 a month for a two-bedroom apartment in the city. That’s a 12.1% hike from the last time the survey was conducted in early 2022.

The results are even more dramatic for studio apartment rentals, which now average $1,342 per month, representing a 23.2% over the past 20 months.

The report is the latest indicator of the challenges many face trying to obtain affordable workforce housing in the area.

“I think folks who have owned their homes for years, with stable monthly payments, would be shocked to know the average rent for a 3-bedroom apartment is nearly $2,500 a month,” said Housing Solutions of Northern Arizona CEO Devonna McLaughlin at the time of the release of the Rental Attainability Report. “Having stable housing costs is a privilege denied to many in our community, who see rents increase annually and who struggle to cover ever-increasing housing costs while paying other bills.”

The housing crunch also impacts our economic vitality, as was noted in the ECoNA strategic plan released last fall. As part of a SWOT analysis, one of the top weaknesses of the region was insufficient affordable housing for “college graduates, young professionals, workforce, and even executive level business workers.”

Conversely, one of the top opportunities listed in the analysis was to “champion and adopt municipal/county public policies that will catalyze housing development in the region, including attainable/accessible workforce housing.”

Efforts to spur the creation of more workforce housing is one of the top three priorities of ECoNA this year. Our leadership is working to find opportunities, innovations, and collaborations in the public, private and nonprofit sectors that will result in improving the workforce housing landscape in the region.

Increasing housing stock and affordability benefits not only home buyers and renters; it will be a boon to all of us, by ensuring that northern Arizona is able to recruit and retain the essential workforce we need to sustain our community and the way of life we all enjoy.