Pew Applauds Arizona State Lawmakers and Governor for Pro-Housing Legislation

WASHINGTON—The Pew Charitable Trusts today commended the Arizona state Legislature and Governor Katie Hobbs (D) for enacting a pair of bills, passed with bipartisan support, designed to improve housing affordability through zoning and permitting reforms. The bills’ primary sponsors were Senator David Gowan (R) and Representative Michael Carbone (R). One bill will allow more property owners to build accessory dwelling units (ADUs)—small units also known as backyard cottages or casitas—on lots with single-family houses. The second new law will streamline the permitting process—speeding up timelines for building new homes and creating cost savings for builders that can be passed along to consumers.

Pew’s research shows that restrictive zoning and land-use laws have stunted housing growth nationwide, leading to a shortage of 4 million to 7 million homes, with this lack of housing supply increasing competition for each available home and thereby driving up prices and rents. Higher housing costs have also been a primary driver of homelessness. And in Arizona, rents and home prices have risen more than in the U.S. overall over the past decade.

But there are proven policy solutions. And with the passage and signing of H.B. 2928 and S.B. 1353, Arizona is taking steps to boost housing availability:

• The ADU legislation, H.B. 2928, builds on the Legislature’s action last year to allow ADUs in larger municipalities by expanding this lower-cost housing option to the county level. This will allow for more casita construction, further increasing housing supply and providing affordable rental options for residents.
• The streamlining of permitting procedures through S.B. 1353 will play a vital role in reducing construction costs and speeding up the development of new homes.

Alex Horowitz, director of Pew’s housing policy initiative, issued the following statement:

“These legislative efforts are essential in addressing the dire need for more housing to improve affordability. With the cost of owning a home in Arizona having jumped nearly 80% over the past seven years and rents reaching all-time highs, we applaud this evidence-based approach to ensure that all Arizonans have access to a variety of housing options. Governor Hobbs and the Arizona Legislature are lowering the barriers to housing access and improving the lives of Arizonans.”