Arizona lawmakers are focusing on the wrong affordable housing problem (2024)

We thank Gov. Katie Hobbs for her veto of House Bill 2570, an action that preserves the valuable resident input in planning and development decisions.

The veto helps avoid irreversible and long-term impacts on years of thoughtful urban planning that created the desirable and safe communities our residents enjoy calling home.

While titled the Arizona Starter Home Act, HB 2570 amounted to a giveaway to developers with no guarantee it would help Arizonans achieve homeownership.

It was fast-tracked through the legislative process without meaningful discussions and resident input that is standard for decisions made at the level of government that is closest and most accessible to residents: cities and towns.

We appreciate Governor Hobbs’ recognition of that fact and look forward to seeing collaborative and meaningful housing proposals reach her desk for signature.

What cities are doing to boost affordability

There is no denying that Arizona has a housing shortage.

Mayors and council members from across our state agree that more should be done to ensure new and longtime residents, first-time homebuyers and middle-class Arizonans can easily find an affordable home. This issue demands collaborative action at the state and local levels.

The League of Arizona Cities and Towns is working with state leaders to balance regulatory certainty for developers with resident participation in decision-making processes.

Another view: Hobbs' housing bill veto is unfortunate

We are supporting measures at the state Capitol this session that streamline rezoning applications for housing projects within a 180-day “shot clock.”

The league is also supporting a measure to encourage adaptive reuse or redevelopment of underutilized commercial buildings into housing, aiming to maximize urban density while ensuring proximity to essential services.

We are also collaborating on measures to streamline middle housing options, such as townhomes, plex developments and accessory dwelling units.

The league aims to refine these legislative proposals to mitigate unintended consequences and facilitate the successful development of diverse housing options for residents.

Radical zoning changes are unnecessary

Looking at data from September 2023, the Maricopa Association of Governments found that there were 275,000 units in the pipeline in the Valley alone. Of those, 106,000 units are in active development, but are unbuilt.

That indicates we have a construction problem, not an approval problem.

This is why we believe concepts like state-mandated “by-right zoning” are unnecessary.

These policies would exclude community input from the planning process and increase the potential for unintended consequences that happen when there is no consideration of the impacts of a proposed development on local infrastructure and water resources.

Arizona’s cities and towns are crucial to providing services and planning for their communities’ future needs. Thoughtful management at the local level has achieved a better quality of life for our residents.

The housing market is complex and there are many economic factors at play that cities and towns have little or no impact on. Labor shortages and supply-chain issues present far-greater challenges to developers than local regulation.

How the Arizona Legislature can help

Prior legislative actions to deregulate the short-term rental industry have had profound impacts on housing supply, where previously available starter homes are now purchased by investors for use as boutique hotels.

Investor dominance in our state’s housing market has significantly contributed to pricing middle-class Arizonans out of homeownership.

We believe the state Legislature should take steps to curtail this investor dominance because it will continue to erode our housing stock that would otherwise be available to our residents.

City and town leaders are open to working on concrete solutions that make sense; that is why we have focused on process improvements that push more efficient government operations.

However, we will not support efforts at the Legislature to obliterate zoning and completely remove the public from the planning and zoning process.

We can’t do this alone.

If you support reasonable and effective changes to state law to foster the construction of more housing in Arizona, while also preserving local planning and community input, we encourage you to contact your legislators and the governor.

Douglas Nicholls is mayor of Yuma and president of the League of Arizona Cities and Towns. Mila Besich is mayor of Superior and the league's treasurer. Al Gameros is mayor of Globe and Cal Sheehy is mayor of Lake Havasu City. Reach them at douglas.nicholls@YumaAz.gov,mila@superioraz.gov, al.gameros@globeaz.gov and sheehyc@lhcaz.gov.

This article originally appeared on Arizona Republic: Arizona has a housing construction problem, not a housing approval one

Arizona lawmakers are focusing on the wrong affordable housing problem (2024)

FAQs

Why are houses so expensive in Arizona? ›

Arizona exemplifies the stress over housing. Over the past decade, the allure of suburban life under cloudless skies has swelled the population of greater Phoenix to five million from 4.2 million, according to census data. The influx pushed housing prices steadily higher.

Why is there a housing shortage in Arizona? ›

Housing shortage

According to the ASU research report, Arizona is short 270,000 housing units, and there are only 26 rentals available for every 100 extremely low-income households. Cook-Davis said the main challenges the developers cited were building costs, zoning issues and opposition from neighbors.

What is the problem with affordable housing in the US? ›

Shortages of affordable housing are a long-standing challenge in the United States. High interest rates and low inventory are contributing to this issue, as is the growing number of millennials, who are looking for larger homes to raise families.

What causes a shortage of affordable housing? ›

Lack of Affordable Housing

This scarcity of affordable housing is due to a combination of restrictive and exclusionary land use and planning policies, a lack of federal and state investment in affordable housing, and local opposition to the development of affordable housing.

What is the most expensive place in Arizona? ›

According to a list compiled by Family Handyman, the most expensive neighborhood in all of Arizona is Paradise Valley and the 85253 zip code.

Are homes cheaper in Florida or Arizona? ›

The answer may surprise you. Are homes less expensive in Arizona or Florida? Both states are among the top in the U.S. for drawing new residents, but overall Florida is more affordable.

Is Arizona no longer affordable? ›

Long known for affordable housing, Arizona is now among the top 10 list of least affordable states, according to data compiled by BestBrokers. The study found that the median U.S. home price reached $408,428 last year, while national income per capita stood at $68,786 as of the third quarter.

Is there a housing crisis in Arizona? ›

Arizona is in the midst of a housing crisis driven by a shortage of 270,000 homes across the state. It's squeezing the budgets of middle-class families and forcing low-income residents into homelessness, with 80% of voters across the political spectrum agreeing that costs are out of control.

Why is rent so high in Arizona? ›

Inflation, labor availability, and supply chain issues have made building new housing units expensive. This situation is compounded by a need for more diversity in housing options, with the market primarily offering single-family homes and apartments. Also Read: What Are The Wealthiest Cities In Arizona?

Will Gen Z ever be able to afford a home? ›

Millennials Got Cheaper Mortgages Than Their Parents

As Gen Z looks to buy their starter homes in the next few years, they will face both high rates and high prices. It may be years before the housing market is affordable again,” Allison explains.

What states have the worst housing crisis? ›

Top 10 States with Most Severe Shortage
  • California, with a shortage of over 881,000 homes.
  • Idaho, with a shortage of over 42,000 homes.
  • Utah, with a shortage of over 61,000 homes.
  • New Hampshire, with a shortage of over 31,000 homes.
  • Oregon, with a shortage of over 87,000 homes.
Mar 17, 2024

Who are most affected by affordable housing? ›

Renters with extremely low incomes face the biggest challenges to finding affordable housing. There are only 7 million affordable units for 11 million households with extremely low incomes, but of the 7 million, 3.3 million are occupied by households with higher incomes.

How should the US handle the problem of affordable housing? ›

Solving the Affordable Housing Crisis Must Include Subsidizing Rent Costs Copy link
  1. Reducing the shortage of deeply affordable rental housing. ...
  2. Prevent the loss of existing affordable housing. ...
  3. Remove barriers to homeownership. ...
  4. Reform existing public and multifamily housing.
Jul 21, 2022

How did the housing crisis start? ›

Key Takeaways. The stock market and housing market crashes of 2008 trace their origins to the unprecedented growth of the subprime mortgage market that began in 1999. Fannie Mae and Freddie Mac made home loans accessible to borrowers who had low credit scores and a higher risk of defaulting on loans.

When did the housing crisis start? ›

The American subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the 2007–2008 global financial crisis. The crisis led to a severe economic recession, with millions of people losing their jobs and many businesses going bankrupt.

Will housing prices drop in Arizona? ›

Zoom in: Zillow senior economist Nicole Bachaud predicts that home prices may decrease marginally during the first half of the year as consumers come to terms with interest rates that are unlikely to drop to the historic lows we saw during the pandemic.

Is it worth buying a house in Arizona? ›

Plus, the Arizona housing market is becoming less competitive, which is good news for buyers. Redfin reports that homes selling for over the asking price in Arizona fell 36% year-over-year while the average amount of days on the market have more than doubled from 21 days to 58 days (March 2023).

Is it a good idea to buy a house in Arizona? ›

Is it a good time to buy a house in Arizona? It's a seller's market, but there are signals that Arizona is starting to look a bit better for buyers right now. More than 40 percent of listings had price reductions in July 2022, and fewer homes are receiving offers above their initial asking price, according to Redfin.

Is it a good idea to buy a house in Arizona right now? ›

Arizona Housing Market Conditions

The current real estate market conditions in Arizona are becoming favorable for home buyers. Here's how: Lower Mortgage Rates: The interest rates for home loans have decreased to 7.01%, marking a decline from approximately 8% in the preceding year of 2023.

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