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The Pros & Cons of Arizona’s ‘Missing Middle’ Housing Bill: HB 2721

By June 27, 2024March 25th, 2025No Comments

By Adam Baugh, Esq. | Phoenix Business Journal

Arizona House Bill 2721 has emerged as a significant new land use law aimed at tackling the state’s middle housing shortage. As the demand for affordable and diverse housing options continues to outstrip supply, the law addresses this issue through a series of provisions. Gov. Hobbs’ recent signing immediately moves forward alternative housing options and municipalities will have to scramble to implement new zoning ordinances, or accept the law as-is.

HB 2721 mandates that cities in Arizona with populations over 75,000 permit the development of duplexes, triplexes, fourplexes and townhomes in single-family residential areas within a mile of central business districts. Additionally, 20% of new single-family housing developments of 10 acres or more may include these “middle housing” types. Municipalities must adopt new zoning code provisions to implement this law by Jan. 1, 2026, or these housing types will be permitted without restriction.

With this imperative in mind, let’s examine the pros and cons of HB 2721 as it relates to addressing the middle housing shortage and its impact on land use law.

Adam Baugh is a land use and zoning attorney and partner at Withey Morris Baugh PLC.