The Shift in Flagstaff’s Rental Market: A Closer Look
Flagstaff has witnessed a significant surge in rental prices over the past decade, with average rents increasing by more than 50% since 2013. However, recent data indicates a potential change in pace.
According to Northern Arizona Housing Solutions, the rental cost for a two-bedroom apartment in Flagstaff saw a marginal rise of less than one percent last year. This is a stark contrast to the double-digit increases of 12% and 13% experienced in 2022 and 2023.
Devonna McLaughlin, the leader of Northern Arizona Housing Solutions, suggests that the increased vacancy rate might be influencing this trend. She states, “As vacancy rates increase, then the demand pressure is lessened and it’s harder then to raise rent. That does not mean that rents are low by any means. It just means that in the past 12 months, they haven’t done double-digit increases like we’ve seen in the past two years.”
This year, around 750 rental units were reported vacant, a figure that is double what it has been in previous years. Despite this, McLaughlin cautions against jumping to conclusions about the long-term implications. She notes that it’s premature to determine whether this is due to the city’s initiatives to reduce housing costs or merely a temporary fluctuation in the market.
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