Arizona Passes New Housing Legislation Allowing Developers to Bypass Zoning Regulations
Arizona Passes New Housing Legislation, Allowing Developers to Bypass Zoning Regulations
Arizona Governor Katie Hobbs has signed two new housing laws, House Bill 2721 and House Bill 2720, that will have a significant impact on housing development in the state. House Bill 2721 allows developers to construct duplexes, triplexes, fourplexes, and townhomes near downtown areas, bypassing local zoning regulations. Simultaneously, House Bill 2720 permits the construction of accessory dwelling units (ADUs) or casitas on lots with single-family homes without design restrictions or additional parking requirements.
Key Takeaways
- Arizona Governor Katie Hobbs signs new housing legislation
- House Bill 2721 allows developers to build middle housing near downtowns, bypassing local zoning
- House Bill 2720 allows accessory dwelling units (ADUs) or casitas to be built on lots with single-family homes, without design restrictions or additional parking requirements
- Cities with more than 75,000 residents must comply with the middle housing law by January 2026 and the ADU law by January 2025
- New laws face pushback from cities and neighborhood groups, with concerns about short-term rentals and larger numbers of ADUs on bigger lots
Analysis
The new legislation in Arizona will impact housing development in cities with over 75,000 residents. Organizations in the real estate sector, such as homebuilders and real estate investment trusts (REITs), stand to benefit from increased development opportunities. However, this may also present challenges to cities and neighborhood groups in managing short-term rentals and potential overcrowding.
The potential increase in housing supply and lower housing costs in the short term could be counterbalanced by concerns regarding overcrowding, strain on infrastructure, and potential decreases in property values in the long term. This situation will require careful monitoring and management by local authorities and stakeholders.
It is important to note that other countries facing similar housing challenges, like Canada and Australia, are likely observing Arizona's developments, potentially influencing their own policy decisions.
Did You Know?
- Middle Housing: This term refers to multi-unit housing types such as duplexes, triplexes, fourplexes, and townhomes. Allowing middle housing near downtown areas can increase housing supply, promote walkability, and create more affordable options for residents.
- Accessory Dwelling Units (ADUs) or Casitas: ADUs are secondary housing units on a single-family lot, often used as rentals, home offices, or guest houses. House Bill 2720 enables homeowners to build ADUs without design restrictions or additional parking requirements, potentially increasing housing supply and providing additional income for homeowners.
- Pushback from Cities and Neighborhood Groups: The new housing legislation faces opposition from cities and neighborhood groups due to concerns about short-term rentals and larger numbers of ADUs on bigger lots, which can change the character of neighborhoods and pose challenges to local infrastructure and services.