NAVAJO NATION REAL ESTATE MARKET UPDATE – 10-2024
The Navajo Nation economy continues to recover after the pandemic, but recovery is a mixed bag. There are several recently completed projects and others that are proposed or currently under construction. On the other hand, the coal mine and several power plants have been shut down in recent years, which was a huge source of jobs and revenue for the nation. This newsletter will go through the recent and proposed projects under construction, new ideas, and future challenges on the nation. First, we will begin by showing the largest communities on the nation, that are listed in the table below, with population estimates provided by World Population Review.
Under Construction and Proposed Developments
On April 6, 2021, the Navajo Nation broke ground on a new 54,000 SF La Quinta Hotel near the community of Shonto, at the T-intersection of US Highway 160 and AZ Route 98. The hotel will feature 83 guest rooms, conference rooms, and other amenities. About 80 jobs were created during construction, and an additional 30 permanent jobs will be created when the project is complete. It was anticipated that the hotel would be completed in the summer of 2024. However, the hotel is in the final stages of completion, as of the date of this newsletter.
A $21.15 million roadway project that will provide better access to Sweetwater, AZ is about 60% complete. This project aims to improve access to the Sweetwater Chapter House and improve infrastructure. About 6.4 miles of roadway will be completed that will include paving with asphalt, and road infrastructure such as signage, drainage structures, and fencing. The estimated completion date of the project is by the end of 2024.
There was a groundbreaking ceremony in February 2024 for the Oak Springs Chapter House renovation. The project is being funded using $4 million from the Nation’s Síhasin fund and $2.8 million from the American Rescue Plan Act Funds. The plan includes a 6,260 SF expansion that will feature a commercial kitchen, shower, assembly area, restrooms, storage spaces, a mechanical room, and a main entrance. The anticipated completion of this project is in 2025.
Long awaited, on October 4, 2024, the Navajo Nation broke ground on the $22.5 million Shiprock Pinnacle Hotel. The 85-room hotel will be a limited-service hotel. The hotel is expected to create 77 jobs and is anticipated to be an economic anchor in Shiprock. Shiprock being one of the largest communities on the nation is in great need of a hotel, possibly two. Currently, the nearest hotels are in Farmington, New Mexico about 28 miles to the east and Cortez, Colorado about 42 miles to the north. Construction on the project is anticipated to begin in November 2024, with an opening in 18 months.
Utah State University is currently in the planning and development stage of an education and community center in Monument Valley. The $14 million project is located northwest of Monument Valley High School and will include a 13,000 SF building. Plans for the center include: classrooms, computer labs, a nursing and CNA lab, career & technical Education lab, small business development space, a welding lab, space for adult education and USU Extension, administrative and faculty offices, and space for community gatherings and public events. The building will also be equipped for distance learning and will offer an array of certificates and degrees, ranging from technical certificates to doctorate degrees, as well as academic guidance and support, counseling services, and career mentoring. Groundbreaking has not been set, but it is anticipated that classes will begin for the spring 2026 semester.
Recently Completed Developments
There was a groundbreaking in October 2008 for Nahata Dziil (New Lands) Shopping Center, and after years of development and delayed construction, the shopping center opened in April of 2019. The shopping center is at the northwest side of the Interstate 40 and Apache County Road 7080. The shopping center consists of 30,000 square feet and tenants include Bashas’ supermarket, a Pizza Edge restaurant, a laundromat, and a proposed convenience store and gas station.
Lukachukai Community School was completed in Fall of 2022. According to https://www.dpsdesign.org/what-we-create/lukachukai#, “The Lukachukai Replacement School project is located on a new 44-acre site surrounded by beautiful views of the Chuska mountain range. The project consists of a new K-8 school, student dormitory, bus maintenance facility, community fire station, and staff housing.”
ZenniHome has located on a portion of the former Navajo Generating Station near Page, AZ. The modular homes constructed at ZenniHome are about 600 SF, with environmentally friendly technology built in to the units.
Light Up Navajo began in 2019 as a partnership between the NTUA and American Public Power Association with the goal to connect Navajo homes to the electric grid. Multiple iterations of the project have increased utility companies participation and families connected to the electric grid. Light Up Navajo V began in April and ended in July 2024 with 46 electric utility companies from 16 states participating. The NTUA announced that the goal of connecting over 150 families to the electric grid was met for Light Up Navajo V.
New Sources of Revenue
There is potential for many sources of new revenue, our ideas are mostly related to tourism and gambling. The former rail line for the Black Mesa Peabody Coal mine was returned to the Navajo Nation after the mine shut down in August of 2019. The nation is currently exploring options on the 78-mile track, currently known as the Black Mesa-Lake Powell Corridor Track. Options for the railway include grazing uses, a rails to trails system, environmentally friendly vehicles attached to tracks, and a scenic railway for visitors exploring the nation. If the nation were to develop a scenic railway, they could manage it on their own, or there is a company out of Durango, Colorado known as American Heritage Railways that manages the Durango & Silverton Narrow Gauge Railroad, Great Smoky Mountains Railroad, and Branson Scenic Railway.
