By Bear Howard
Talk to any longtime resident of Sedona, and you’ll probably hear the phrase, “Remember when?” They reminisce about the small market on Highway 179, the Flicker Shack, and the funky Mars/Alien burger stand on 89A in West Sedona. They recall fights over streetlights on 89A and debates over whether a CVS should be built at the corner of Airport Road and 89A.
Change has always been part of Sedona’s story, but something about this latest shift feels different—and not in a good way. Sedona is losing its middle class, the backbone of any real community. More than 1,000 homes that once belonged to local families and workers have been turned into mini-hotels called short-term rentals.
In most places, gentrification happens gradually over decades. In Sedona, it has happened almost overnight. What was once a diverse town is quickly becoming a 55+ luxury retreat for the wealthy. In some ways, Sedona is turning into Paradise Valley North.
As local families and workers leave, Sedona isn’t just losing housing—it’s losing its identity. The artistic, mystical, and creative energy that once made this place special is fading. A healthy community needs a mix of incomes, ages, and perspectives. Just like a recipe needs different ingredients to taste great, a town thrives on diversity. Without it, Sedona risks becoming dull, expensive, and out of reach—a place designed only for tourists and retirees who can afford it.
At the same time, visiting Sedona has become more expensive. Tourists who once stayed in hotels now rent entire homes, making short-term rentals even more profitable. This shift has made Sedona an even bigger draw for high-end travelers while leaving fewer homes for people who actually live and work here.
And it’s hurting the town in serious ways. With fewer workers able to afford to live here, businesses are struggling to stay open. Schools, once full of life, are now seeing enrollment drop, leading to budget cuts. City services rely on tourist spending, but the wealthiest new residents mostly contribute only through property taxes—money that largely goes to the county, schools, and fire districts, not the city itself.
Some people want to turn Sedona into an exclusive, members-only retreat—a gated community in the red rocks. But instead of membership fees, the price of entry is sky-high home prices and rental costs.
What Happens Next?
If Sedona keeps going down this path, it will soon look like a high-end retirement village, where newcomers take control while longtime locals get pushed out. Look at local platforms like Nextdoor, and you’ll see how many newer residents don’t understand how small government works or how Sedona has evolved since becoming a city in 1988—just 37 years ago.
Fixing this won’t be easy. But a big part of the solution is increasing housing density—building three- and four-story apartment complexes, some with subsidies to keep rent affordable for middle-class families and workers. More housing could bring back young families, stabilize schools, and help keep businesses alive.
The days when the middle class could afford single-family homes in Sedona are over. Now, the priority needs to be workforce housing, stricter short-term rental rules, and policies that make Sedona a place where people can live—not just visit.
Do we really need more mega-mansions? Or do we want to fight for a Sedona that still feels like home?
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