The median cost for a single-family home in Sedona is more than double than of other Arizona cities and is out of reach for many workers. 

Sedona, with an economy that thrives on tourism, has always been an expensive place to live. But after the state passed a law that the city could no longer prohibit people from using homes as short-term rentals, the affordability gap widened. Karen Osburn, assistant city manager, said the city is initiating a study to figure out the best way to confront the issue.

“There are two components to the study. So one is a needs assessment. And the second is to develop a five-year, affordable-housing action plan,” Osburn said.

Osburn said that the city hopes the study is finished within nine months and that new building projects can begin soon after.

The Sedona City Council has allocated $2 million to an affordable-housing fund to bridge the gap between workforce income and the cost of long-term housing.

“The council has identified this workforce housing issue as one of their highest policy priorities, but we really don't have a plan in place, as to how to do that. So that's why this is going to be so important to us," Osburn said.

 Osburn said the last time she checked Zillow for long-term rentals, there were only 28 listings. Those ranged from $1,550 per month for a small two-bedroom to $4,500 per month for a standard single-family home.