There are actually a few projects underway to create a flying car. It is a tough engineering challenge, though.
Volante's project has flown a prototype and has tested it on the ground.
Terrafugia's project has passed the road tests and is about to begin flight tests.
I've met the man who owns the only airworthy Molt Taylor Aerocar. He says that $3.5 million asking price for a Model I Aerocar is absurd and it hasn't flown in years. He lives in Black Forest, Colorado but the Aerocar is based in Orlando, Florida because it doesn't fly well at this altitude. He has his own flying car project based on a Lotus Elise sports car but it hasn't progressed very far.