Yavapai County STR Study Unveiled by Realtors’ Association: Key Insights Revealed

The Sedona-Verde Valley Association of Realtors (SVVAR) convened a public meeting on March 6 at the Cottonwood Recreation Center to present findings from a recently completed study examining the economic impact of short-term rentals (STRs) in Yavapai County. This study was conducted by RRC Associates, a Boulder, Colorado-based research firm.

Phil Terbell, a member of SVVAR’s Government Affairs Committee, emphasized the significance of accurate data, stating, “I think the information you’re going to hear today is valuable information. It’s accurate information. Some of it to me was staggering.” He highlighted that discussions surrounding STRs have often been anecdotal, lacking solid empirical evidence.

According to data sourced from AirDNA, the SVVAR study revealed that as of July 2024, Yavapai County and Sedona collectively housed 5,432 STRs. Breaking this down, there were 2,438 in Sedona, 895 in the Village of Oak Creek, and 562 in Prescott, among others. The study estimates a significant rise in these numbers since June 2017 when only 729 STRs existed in Sedona.

In contrast, city records showed variable STR counts, noting 1,138 in December 2018 and reaching 1,218 by February 28, 2025. The SVVAR’s report pointed out discrepancies, attributing some to the inclusion of non-residential units like hotel rooms and timeshares in AirDNA’s listings, suggesting that the overall share of housing units represented as STRs may be inflated.

Amid other statistics, the study placed the number of hotel rooms in Sedona at 1,533 based on data from CoStar, while the Sedona Chamber of Commerce estimated 2,789. Greacen, SVVAR’s government affairs director, observed that discrepancies further complicate the landscape of STR reporting.

In total, the study identified that 37% of STRs are owned by residents of Yavapai County, with a notable percentage owned by individuals from Maricopa County and out-of-state owners, primarily from California. Greacen remarked, “Ninety-two percent of STRs within Yavapai County are owned by one individual or a family,” countering the common narrative that STRs are predominantly investment properties.

The economic ramifications of STRs were significant, with the study estimating their contribution of $195 million in earnings across Yavapai County and generating approximately $160 million in Sedona alone, from which $11.2 million comes from lodging taxes, representing over a quarter of the city’s transaction privilege tax revenues.

Greacen warned against potential bans on STRs, stating they could result in drastic revenue losses for the community. “If you do away with STRs, you’d have to double this number [of hotel rooms] to replace that economic sector,” he added, highlighting risks pointed out by other cities where such bans led to rapid price increases for hotel accommodations.

The study also surveyed STR owners, revealing that many utilize their properties for personal use in addition to rentals. If a ban were implemented, 37% indicated they would consider selling their units. Greacen stressed that the broader economic impact must be considered alongside housing discussions, citing essential variables like unemployment and housing affordability.

During the meeting, important questions were raised about the actual influence of STRs on home values, with Greacen asserting, “The impact of short-term rentals on the value of a home in any community, in isolation, is less than or about one percent.” Although anecdotal evidence of market disruptions exists, research failed to substantiate major value declines directly linked to STRs.

As the discussion unfolded, community representatives expressed concerns over regulatory impacts, aiming for clarity in STR policies. Greacen observed, “When you have STRs, property values tend to increase,” noting significant differences in property values between areas that permit STRs and those that don’t.

As the meeting concluded, Greacen anticipated varying public perceptions of the study’s findings, aware that interpretations could be selective based upon differing interests. The full 163-page study is available for public review, offering detailed insights into the ongoing discourse surrounding short-term rentals in the region.