Nestled amidst the breathtaking red rock formations, Sedona, Arizona, beckons travelers from far and wide with its mesmerizing landscapes and mystical allure.
Beyond its natural wonders and spiritual retreats, this enchanting desert town has also witnessed a surge in tourism, drawing in millions of wanderers annually. As the influx of visitors continues to surge, so does the thriving short-term rental market in Sedona.
Join us on an exploratory journey as we delve into the vibrant tapestry of Sedona’s Airbnb rental market. In this guide, we’ll provide you with an in-depth analysis and insider insights into the dynamic vacation rental landscape of Sedona, AZ.
Supply
The most popular homes are 1-bedroom homes, comprising 30.05% of inventory. This is followed by 3 and 2-bedroom homes at 29.31% and 25,14% of the total inventory, respectively.
The occupancy rate is 63%, and the annual revenue for a short-term rental is $70,900. These figures are impressive and illustrate the high demand for short-term rentals in Sedona.
Average Daily Rate
The median ADR for the market is $368.30. The Average Daily Rate is the highest for 7-bedroom homes ($481) followed by 5-bedrooms and 6 bedrooms at $400 and $360 respectively.
Short-Term Rental Regulations
Short-term rental regulation in Sedona is investor-friendly. Unlike many other cities in the US, Sedona does not have strict regulations on short-term rentals.
Homeowners are not required to obtain special permits or licenses to operate a short-term rental property. This relaxed regulatory environment makes Sedona an attractive location for investors looking to enter the Airbnb rental market.
Population and Crime Rate in Sedona, AZ
According to the US Census Bureau, the population of Sedona, AZ, was 9,763 in 2022. The city has a low crime rate, with a crime index of 41 out of 100, according to NeighborhoodScout. This makes Sedona one of the safest cities in Arizona.
Sports Teams and Colleges
Sedona, AZ, is not home to any major professional sports teams. However, the city offers various recreational sports facilities, including hiking, mountain biking, and golf courses. Additionally, there are no colleges located in Sedona, AZ. However, there are several colleges and universities located within driving distance, including Northern Arizona University in Flagstaff and Yavapai College in Clarkdale.
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Visitors
Sedona, AZ, attracts visitors from all over the world. The majority of visitors come from within the United States, with the top states being California, Arizona, and Texas. However, the city also attracts a significant number of international visitors, particularly from Canada, the United Kingdom, and Germany.
According to the Sedona Chamber of Commerce and Tourism Bureau, there were over 3 million visitors to Sedona in 2019. This number has been steadily increasing over the years, thanks to the city’s natural beauty and cultural attractions.
Tourist Attractions
Sedona, AZ, is home to several popular tourist attractions. The most famous is perhaps the stunning red rock formations that can be seen throughout the city. Visitors can explore these formations on foot, by bike, or on a guided tour. Another popular attraction is the Chapel of the Holy Cross, a Roman Catholic chapel built into the red rocks.
Other popular attractions in Sedona include the Sedona Arts Center, which offers classes and exhibits on the local arts scene, and the Tlaquepaque Arts and Crafts Village. This shopping center features the work of local artists.
Peak Season
The peak season in Sedona, AZ, is from March to May and from September to November. During these months, the weather is mild, and the city hosts several cultural events and festivals. The off-season is from December to February and from June to August, which is when the temperatures can be hot and the city is less crowded.
Conclusion
The short-term rental market in Sedona, AZ, is thriving, with high demand and increasing supply. The average daily rate and occupancy rate are both impressive, and the average gross yield for (Airbnb) short-term rentals is above the national average.
Additionally, the relaxed regulatory environment makes Sedona an attractive location for investors looking to enter the short-term rental market. Overall, the short-term rental market in Sedona, AZ, is a profitable and investor-friendly opportunity.
