Affordable housing in Sedona? It’s coming to the city after long wait

Article originally posted on AZ Central on July 28, 2025

A new affordable apartment complex in Sedona will provide homes for less than half what an average one-bedroom in the Red Rock city costs.

Rents in the 30-unit complex, called Villas at Shelby, will start at $862 a month for a one-bedroom and less than $1,200 for a three-bedroom. The typical one-bedroom Sedona apartment rents for $1,800, according to apartment research firm Zumper Inc.

Sedona officials have worked on the housing development for a while and donated a 1.2-acre site for it. The Arizona Department of Housing and a low-income housing tax credit is funding the complex’s development.

“Affordable housing is so important in our community,” Sedona Mayor Scott Jablow said. “It helps families stay here, it helps workers live close to their jobs, and it makes our whole city stronger.”

Sedona is in the midst of a housing crisis. Many of the city’s 3 million annual tourists to the city opt to stay in short-term rentals that include lavish mansions costing more than $1,000 a night. As many as 20% of Sedona’s homes are short-term vacation rentals, according to the city.

Because so many investors have snatched up Sedona homes to turn them into rentals, housing prices have soared. Many workers needed to keep Sedona running must live elsewhere and make long commutes.

Sedona has struggled to get more affordable housing for those workers. Last year, city officials approved rezoning a 6-acre parking lot to have temporary restrooms, showers and trash bins where 40 cars could park overnight to get some type of shelter for workers.

The City Council passed the plan in early 2024, but voters won a referendum against it last fall.

“These homes are for the people who make Sedona run — the workforce, the families and the long-time residents who want to stay close to what they love,” Matt Shoemacher of HS Development Partners, which is developing the apartments, said. Wespac Residential is the builder.