Phoenix Named No. 1 Market for Job Growth -- What Impact on Flagstaff?

Like it or not, Flagstaff's economy and housing market are tied, at least in part, to Phoenix. If the housing market in Phoenix is slow and heavy with inventory, Flagstaff's housing market is inevitably going to be affected. There is not a direct correlation. Historically, Flagstaff's housing swings are milder than those in Phoenix. For example, when Phoenix had the highest percentage median price increase in the nation (42%), Flagstaff's increase was "only" 33%. Now prices are going in the other direction, and, again, the Phoenix market has moved faster down than Flagstaff.

The Phoenix Business Journal says there is cause for optimism about the Phoenix economy because the Phoenix area is still #1 in the country for job growth from 2002 to 2007, according to the Phoenix Business Journal analysis published September 10. That should bode well for the recovery of the housing markets in Flagstaff and Phoenix.