PHOENIX — Construction is officially underway in Sedona on a long-anticipated affordable housing project designed to serve residents struggling to find stable, reasonably priced living options in the high-cost community.
The development, called The Villas on Shelby, broke ground recently and is being constructed by Wespac Residential Inc. on 1.2 acres of land owned by the city of Sedona. Located in a city known more for luxury resorts and tourism than attainable housing, the project is being hailed as a milestone for local residents and workers.
According to a press release from Wespac, the new apartment community will include 30 total units: 24 one-bedroom apartments and six three-bedroom units. The three-story complex will also feature a range of amenities including a fitness center, a community room, covered parking, and an outdoor playground.
Construction is expected to be completed by May 2026, with the first residents moving in immediately afterward, assuming the timeline stays on track.
The project marks Sedona’s first affordable housing effort to be backed by federal low-income housing tax credits. Additional funding comes from Arizona’s State Housing Trust Fund, a critical source of support for affordable housing initiatives across the state.
“This project is a testament to what can be achieved through strong partnerships and a commitment to community impact,” said Ian Fawley, senior project manager for Wespac Residential Inc. “We’re proud to bring this development to life in Sedona, where the need is urgent and the outcome will directly benefit residents who help make this city thrive.”
Local officials and housing advocates have long pointed to Sedona’s extreme housing shortage—especially for service workers, educators, and first responders—as a barrier to maintaining a healthy, functioning local economy.
Elsewhere in Arizona, cities like Phoenix have also been ramping up affordable housing initiatives, including projects near downtown and Sky Harbor International Airport. But for Sedona, The Villas on Shelby is a first—and one that city leaders hope will set a precedent for future projects.
