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Why Solutions for Arizona’s Housing Shortage are Facing Fights

By February 15, 2023March 13th, 2023No Comments

By Catherine Reagor | Arizona Republic

Arizona’s housing shortage is straining many renters’ budgets and forcing too many out of their homes.

The state’s population has grown faster than the construction of homes and apartments since the Great Recession, and the resulting shortage pushed up home prices and rents.

Arizona needs at least 270,000 additional homes, and many of them need to be affordable for people making minimum wage.

Burdensome zoning and other regulatory issues are big and costly reasons for not enough rental homes, particularly affordable ones, getting built.

A rapidly rising wave of not-in-my-backyard-ism that has led to packed neighborhood meetings with angry residents putting city council members on the hot seat is another big reason.

As the problem drags out, building and land costs are climbing, making much-needed housing even tougher to build.

A group of legislators, other government officials and housing experts are proposing some potential solutions to the widespread problem after meeting for six months last year.

Many of the recommendations, including allowing cities and counties to require developers to include some affordable housing in housing projects, require legislation and other big lifts.

Housing takes too long to build, according to Sen. Steve Kaiser, R-Phoenix, who was co-chair of the Housing Supply Study Committee created last year. The committee found in many cases it’s taking at least two years for apartments to be planned and built.

Kaiser introduced a bill last week that would limit some of what municipalities can require from developers, expedite the planning and development process and potentially compensate developers who lose money on projects that stall to spur more housing to go up faster.

The bill passed Wednesday, Feb. 8, through the Senate Commerce Committee, which Kaiser chairs.

But the legislation drew criticism at the hearing from some housing advocates and committee members who said it doesn’t specifically address affordable housing.

Many Arizonans are stretched to afford a home

Almost 520,000 metro Phoenix residents are paying more for housing than they can afford, according to the Maricopa Association of Governments.

Arizona’s homeless population increased by 23% between 2020 and 2022.

“We need to make progress on the state’s housing problems right away,” said Joan Serviss, director of the Arizona Housing Department, who was on the housing supply committee too. “We need more resources for housing and the unhoused fast.”

Critics say housing legislation is not focused on affordability

Kaiser’s bill calls for:

  • Allowing single-room rentals so more people can rent a room in a house, which could specifically help seniors with fixed incomes facing homelessness, said Kaiser.
  • Reducing design review requirements from municipalities.
  • Building more accessory dwelling units, which are secondary, smaller and less expensive homes on residential lots. These currently are tough to build and require special zoning in many communities.
  • Developing homes on smaller lots and building more townhomes and fourplexes, all of which are tougher to get zoning for now.
  • Adding manufactured homes in neighborhoods as long as their values are in line with other houses in the area.
  • Providing “at-risk” permits that would allow builders to keep developing infrastructure for apartments and homes on conditional zoning approval, so the process isn’t as slow and costly.
  • Allowing multifamily development on commercially zoned land within two miles of light rail.

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