FOR IMMEDIATE RELEASE
Wednesday, March 6, 2024
Arizona Legislature Passes Republican Bill to Make the American Dream of Homeownership More Affordable for Arizonans
PHOENIX, ARIZONA— The American dream of homeownership can soon be a reality for many hardworking Arizona families and young adults who are currently priced out of the market, thanks to the Legislature's passage today of the "Arizona Starter Homes Act."
Since January of 2020, the median Arizona home sale price has increased by more than 50% and currently sits at a whopping $430,000. The driving force behind these skyrocketing prices is a supply shortage of roughly 270,000 housing units in Arizona. To bring prices down, supply must increase. Unfortunately, as developers build new starter homes to meet this demand, they're faced with requirements from cities and towns that are dramatically increasing costs, which are ultimately passed onto buyers, preventing them from being able to afford a home.
This legislation, sponsored by Senate Majority Leader Sonny Borrelli and House Majority Leader Leo Biasiucci, prohibits cities and towns from mandating homebuyers pay for costly amenities they don't want or mandating the formation of homeowners associations (HOAs). It also prohibits cities and towns from regulating the aesthetic features of a home, such as paint color, lighting, and roof design, which can tack on tens of thousands of dollars to the sale price of a home. Additionally, the bill allows homes to be built on smaller pieces of land, which are less expensive, by prohibiting cities and towns with populations of more than 70,000 from setting minimum lot sizes above 1,500 sq. ft. in new subdivisions larger than five acres.
"Hardworking Arizonans are finding it increasingly difficult to purchase their first home and begin their pursuit of the American dream. This legislation is a step in the right direction in bringing prices down by eliminating some of the restrictive government red tape and expensive regulatory constraints being passed onto homebuyers," said Senator Borrelli. "Government should do everything in its power to make the lives of our citizens better, but local municipalities are overstepping their authority by trying to control private property rights, instead of focusing their attention on valid rules and regulations protecting against nuisance and safety issues. The Arizona Starter Homes Act is a no-brainer, and I'm encouraged it received bipartisan support. I look forward to the Governor taking appropriate action on behalf of our citizens' lives and livelihoods by signing this bill into law."
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For more information, contact:
Kim Quintero
Director of Communications | Arizona State Senate Republican Caucus