Flagstaff, Arizona, a picturesque mountain town known for its stunning natural beauty and proximity to the Grand Canyon, has experienced notable shifts in its housing market over the past decade. The city has seen a general trend of increasing average home prices and average rent prices, while homeownership rates have fluctuated. From 2013 to 2022, Flagstaff's homeownership rate showed significant variation. It rose from 41% in 2013 to a peak of 52% in 2017, before declining to 41% by 2022. During this same period, average home prices demonstrated a steady upward trend. In 2013, the average home price was $259,383, which more than doubled to $629,106 by 2022. This substantial increase in home prices, particularly the sharp rise from $424,678 in 2020 to $629,106 in 2022, likely contributed to the decline in homeownership rates in recent years.

Federal interest rates appear to have influenced homeownership rates in Flagstaff. The period of low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%) coincided with an increase in homeownership from 41% to 50%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined back to 41%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.

Renter percentages in Flagstaff have mirrored the inverse of homeownership rates, rising from 48% in 2017 to 59% in 2022. Average rent prices have also shown an upward trend, increasing from $1,093 in 2013 to $1,409 in 2022. The rise in both renter percentages and average rent prices could be attributed to Flagstaff's growing population, which increased from 68,661 in 2013 to 75,902 in 2022, creating higher demand for rental properties.