In many aspects, Sedona, Arizona, is reminiscent of Santa Fe, New Mexico, a city that over time evolved from a sleepy Southwest community to an artists' enclave to tourist attraction, and, ultimately, playground and second home for the rich and famous. Some Santa Fe natives and vacation home owners who resided there long before the city's rise to fame are now grumbling over what they view as negative changes in the city's character as they note its efforts to attract even more tourists.

Incorporated just 13 years ago and surrounded by National Forest land, Sedona (named after early settler Sedona Schnebly) is certainly known throughout the United States for its stark beauty, its relaxing and luxurious spas, its colony of talented artists and its spiritual, escapist atmosphere.

Despite this success and notoriety, however, Sedona has managed to retain its small-town feel. That's quite a feat considering the more than 4 million visitors who journey here each year. Sedona residents are by no means wishing to discourage the legions of tourists who travel to their city; tourism now represents the largest contributor to the local economy (Sedona is, in fact, Arizona's second-most-visited destination behind the Grand Canyon). However, during the later part of the 20th century, the local economy grew, strengthened and diversified into other sectors, providing a stimulus to population growth.

Today, in addition to tourism, Sedona's economy is thriving in the retail, services, health care, construction and tourism sectors, among others. As the economy has grown and diversified, a greater percentage of young professionals and their families have opted to abandon big-city life in favor of Sedona. A large number of retirees, too, are choosing to move to Sedona. It's a unique and in many aspects more active and youthful alternative to Florida, South Texas or other traditional retiree destinations.

This city of more than 16,000 residents has so many quality of life advantages that it's difficult to imagine anyone not being tempted to relocate here. In addition to economic factors, Sedona's other selling points include year-round mild weather conditions (and yet, the city experiences four distinct seasons with just under 9 inches of snow annually, on average); fresh and clean air and water; a relaxed and friendly environment much lower in stress than major metropolitan centers; a near-limitless variety of recreational opportunities regardless of the season; a superior array of cultural offerings; and a strong public school system.

Sedona seems to lead a charmed life in terms of its geography.

One normally thinks of scorching heat when the word "Arizona" is mentioned, but Sedona is exempt from such temperatures. Located at an altitude of 4,500 feet, the city not only is free from excessive heat, but also wintery conditions that affect mountainous regions to the north. Instead, Sedona basks in the pleasantly warm sunshine most days of the year. Situated at the heart of Arizona's breathtaking Red Rocks near Oak Creek Canyon, this is prime country for hiking, hot air-ballooning or taking an afternoon drive. In fact, Rand McNally has named Sedona's stretch of Highway 89A that cuts through Oak Creek Canyon as one of America's "most beautiful drives." The Grand Canyon, as well as numerous Indian reservations and Indian ruins, are within close proximity and represent opportunities for day trips.

As tourism has grown, so, too, have the number of luxurious resorts and spas, as well as more modest bed-and-breakfast accommodations. The region's strong connection to spirituality, and its Native American roots, surround it with a mysterious aura that many find irresistible. In keeping with this atmosphere, Sedona's spas offer unusual treatments that incorporate Native American traditions and new age interests. In addition, the number of art galleries, sporting facilities and restaurants have grown exponentially.

Given this phenomenal growth, it's obvious that the residential real estate market has been busy in Sedona, accommodating both full- and part-time, seasonal residents. While condominium complexes (including timeshare properties) have become more popular in recent years, single-family homes (many of which are new construction) remain the most common form of housing in Sedona. Land remains quite plentiful, offering retirees and move-up buyers the chance to build their dream homes in the heart of Red Rocks country.

While Sedona may not be as familiar a household name as Santa Fe, it still maintains an air of exclusivity that has driven up real estate prices over time. Don't despair, however; you can still buy a piece of the dream for between $100,000 and $150,000, although you'll generally be getting a two-bedroom home for that price. Edge up closer to $200,000, and your options become more plentiful. Pay $300,000 and up, and you'll be treated to choice views of the surrounding canyon and Red Rock panoramas.

In contrast to many tourism-oriented destinations, which offer little opportunity for aspiring relocators aside from jobs in the hospitality or retail industries, Sedona has fostered the growth of its economy on top of the strong foundation created by the tourism sector. As more visitors are choosing to call Sedona their home, it's evident that economic developers had the best interests of their city at heart when they worked to promote the city not just as an idyllic vacation spot, but also a city with a quality of life among the nation's highest, and where residential real estate represents a smart investment -- especially if Sedona continues its current growth trends.

Published: January 10, 2001

Use of this article without permission is a violation of federal copyright laws.