I held a special council meeting on May 24th regarding the question -- "Why is housing so expensive in Flagstaff?" I invited developers, contractors, real estate agents, mortgage lenders, material suppliers and other interested parties. We had a great turnout.
The conclusion I reached is that there is not enough supply of housing. There are no new subdivisions. Nor are there enough apartments.
Why is there not enough supply? The big issue is the cost to extend roads and utilities. It is not always feasible for a developer to pay all the costs, which will benefit other property owners. Any developer will pay their share of the costs -- but paying the entire amount is often enough to make a developer say, "I will wait."
Perhaps the City could pay the cost of infrastructure extensions and then recoup that cost as subdivisions are built. I am exploring this option as a way of getting housing to be more competitive and less expensive to consumers.
Jerry Nabours for Mayor