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.
Market Overview
To understand the dynamics of the short-term rental market in Sedona, let’s delve into some key statistics and figures.
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.
Homes Appreciation
As of October 2024, according to Zillow, homes in Sedona experienced an appreciation of 3.75%. This data indicates a significant increase in property values.
Median Home Value
As of October of 2024, Homes in Sedona have appreciated by 3.75%. The median home value in Sedona is $944,100 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
As of October 2024, Sedona boasts a significant Airbnb rental market, with approximately 2,142 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $342. The Average Daily Rate is the highest for 5-bedroom homes ($366) followed by 4-bedrooms and 3 bedrooms at $328 and $279 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 66% for Airbnb rentals in Sedona. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Sedona ?
As of October 2024, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 8.19% in Sedona. This figure suggests that short-term rentals in the city offer a favorable return on investment. Sedona is ranked #78 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Sedona earn an average of $53,232 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Sedona is 0.52%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
Regulations
Sedona’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
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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.
Hosts
The market is dominated by property management firms. The largest host is Sedona with 4.95% of the total inventory and an average review of 4.65⭐️s .
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.
Guests
The majority of the guests come from inside of Arizona. 6.30% of all guests are from Phoenix followed by Tucson with 2.10%.
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.
