FLAGSTAFF, AZ (AZ Family) — Groups in Flagstaff are looking for creative ways to deal with the housing crisis.

Flagstaff’s average selling price is 75% above the national average, according to Redfin.

Nearly four years ago, the city of Flagstaff declared a housing crisis. Zillow says the sales price of homes increased about 4% during this time period.

To combat this, Habitat for Humanity’s Flagstaff chapter is expanding its coverage Startup Home Page Program By building 40 homes that people can live in while saving thousands of dollars a year to purchase a home.

Executive Director Eric Wolverton said the organization has worked for years to provide affordable housing options but wants to create a pipeline for people to become homeowners.

“The whole point of our starting holes is to allow people to easily get into homeownership,” Wolverton said. “We want to create real residences, individual homes.”

So they created the starter home program for families making less than $60,000.

Families pay $1,000 down for a 500-square-foot home with a kitchen, attic room and front porch.

The mortgage is also $1,000, but most of it goes to the homeowner.

“$833 goes towards capital savings, which translates into $10,000 a year,” Wolverton said.

Residents must stay in their homes for a minimum of three years and a maximum of 10 years. They receive the savings funds after selling the house back to Habitat for Humanity.

“They will be able to use a check for $100,000 of their wealth as they wish over a maximum period of 10 years,” Wolverton said.

Two starter homes have already been built south of downtown Flagstaff. Wolverton said their goal is for people to have enough savings to mortgage their own homes in Flagstaff.

The first ten homes will be completed this summer and over 500 applications have already been received. The remaining houses should be completed by the end of 2026.

Wolverton said the idea started here in Flagstaff and has now been adopted nationwide.

“So if I can provide that opportunity for people who want to work hard here,” Wolverton said. “I want to do this because Flagstaff gives me so much.”

Applications for the first 10 households close on November 27. For more information on how to apply: Visit the organization’s website.

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