Flagstaff’s ‘Starter Home’ program expands, helping provide affordable housing

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

According to Redfin, Flagstaff’s median sale price is 75% higher than the national average.

Almost four years ago, the city of Flagstaff declared a housing crisis. In that timeframe, Zillow says, the selling price of homes has gone up nearly 4%.

To combat this, the Flagstaff chapter of Habitat for Humanity is expanding its Starter Home Program by building 40 homes where people can live while saving thousands of dollars a year to buy a house.

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

“The whole point with our starter homes is to allow people to get easy entry into home ownership,” Wolverton said. “We want to create real housing, 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, lofted room and front porch.

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

“$833 goes in a principal equity savings, which turns into $10,000 a year,” Wolverton said.

Residents must stay in their homes for at least three years and a maximum of 10 years. After they sell the house back to Habitat for Humanity, they receive their savings funds.

“The 10-year maximum timeframe they get a check for $100,000 of their wealth to do with as they wish,” 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 put down a mortgage on their own house in Flagstaff.

The first ten homes will be finished this summer, and they’ve already received over 500 applications. The remaining homes should be completed by the end of 2026.

Wolverton said this idea started here in Flagstaff and is now being adopted nationwide.

“So if I can just provide that opportunity to those folks that want to work hard here,” Wolverton said. “I want to do that because Flagstaff gives so much back to me.”

Applications for the first ten homes close on Nov. 27. For more information on how to apply, visit the organization’s website.

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