Arizona’s Housing Crisis: How New Legislation Can Bring Relief

Arizona’s housing shortage has driven up costs for renters and homebuyers. Despite recent legislative efforts to expand homebuilding—such as allowing backyard casitas and multi-unit housing—affordability remains a challenge.

To address this, the Arizona Senate recently passed the “Starter Homes” bill, enabling smaller homes on smaller lots. The House should pass HB2371 to make homeownership more accessible. A similar policy in Houston reduced home prices by $200,000.

Over the past seven years, Arizona’s homeownership costs have risen 78%, and rents have more than doubled. High costs have also led to a 65% increase in homelessness. Strict local regulations and high construction costs limit supply, allowing wealthier out-of-state buyers to outcompete locals.

Additional reforms—such as expanding casita availability (HB2928) and streamlining permitting (SB1353)—can help. Casitas provide affordable rentals and increase property value, while cutting permitting delays will speed up home construction.

Cities like Houston and Minneapolis show that increasing housing supply improves affordability. Arizona lawmakers must act now to lower costs and expand options. Click [here] to read the full article and learn how you can support these efforts.