18 Dec December Rental Market Update: Northern Arizona
As the snowflakes dance and the air fills with the scent of pine, we at Unlimited RE Property Management are thrilled to present our December update on the rental markets in Flagstaff, Prescott, Sedona, and Lake Havasu City. This month, we’re spreading holiday cheer and exploring the opportunities these markets offer as we approach the festive season. Let’s dive into the latest data and see what it means for your investment strategy, considering the broader forecast for 2026.
Flagstaff
Flagstaff’s rental market has seen a slight decline, with the average rent decreasing to $2,100. This $100 month-over-month decrease, combined with a $160 year-over-year drop, indicates a stabilizing but slightly down market. With 244 available rentals, demand remains steady, providing a promising outlook for property owners and investors. As we enter the holiday season, this stability offers a great opportunity for those looking to invest or rent out their properties. Looking ahead to 2026, Flagstaff is expected to experience slower rent growth and increased tenant selectivity, reflecting a broader market correction in Coconino County.
Prescott
Prescott’s rental market has shown resilience, with the average rent holding steady at $1,850. Despite a $50 month-over-month decrease, the $50 year-over-year increase suggests a market that is finding its balance. With 237 available rentals, there is a healthy supply to meet existing demand. Property owners can capitalize on this stability by offering festive incentives to attract renters during the holiday season. The forecast for 2026 indicates a period of stabilization followed by modest, sustainable growth, as the market adjusts to rising tenant selectivity.
Sedona
Sedona’s luxury rental market has experienced a remarkable upswing, with the average rent rising to $3,444. This $144 month-over-month increase, along with a $444 year-over-year surge, indicates a thriving luxury rental scene. With 108 available rentals, Sedona continues to be a premium destination. Property owners should leverage this growth by highlighting the unique holiday experiences their properties offer to luxury travelers. However, the 2026 forecast suggests a potential cooling in the luxury segment, as tenant budget constraints become more pronounced.
Lake Havasu City
Lake Havasu City’s rental market has maintained its stability, with the average rent remaining at $1,900. The $0 month-over-month change, alongside a $100 year-over-year drop, suggests a market that has found its equilibrium. With 391 available rentals, the area offers ample supply. As the holiday season approaches, the area remains attractive for both short-term and long-term rentals, with visitors flocking to enjoy the festive atmosphere. The 2026 outlook for Lake Havasu City is characterized by its cyclical nature, with seasonal fluctuations playing a significant role in rental trends.
As we gather around the Christmas tree, let’s reflect on the opportunities and challenges in the rental markets of Flagstaff, Prescott, Sedona, and Lake Havasu City. Whether you’re looking to invest, rent out, or simply understand the market better, Unlimited RE Property Management is here to help. Request a free property analysis today and let us guide you through the ever-evolving world of real estate. Merry Christmas!
Data sourced from Zillow Rental Market Trends as of December 16, 2025.