Arizona Governor Katie Hobbs recently signed two bills, House Bill 2721 and House Bill 2720, as a step to tackle the housing crisis. These bipartisan laws aim to increase housing options by letting developers build in areas where zoning rules were strict before.
They’ll impact cities with over 75,000 people, allowing for more types of homes like duplexes, triplexes, fourplexes, townhomes, and backyard units. House Bill 2721 requires cities with over 75,000 residents to change their zoning laws to allow more types of homes within a mile of downtown.
House Bill 2720 says these cities must permit backyard units on properties with single-family homes without extra rules. The changes are expected to be in place by January 2026 for one law and by January 2025 for the other.
These new rules will likely increase housing options in Arizona. They’re seen as necessary by leaders like Tempe Mayor Corey Woods, especially in cities where it’s hard to find space for new homes.
Nicole Newhouse from the Arizona Housing Coalition thinks backyard units could help without needing new land. However, some worry about issues like turning new backyard units into short-term rentals.
These changes come when the demand for apartments is high, not just in Arizona but also in places like suburban Chicago. Investors might be interested in Arizona’s housing market due to these new laws. By bypassing local rules, developers might find it easier to build in Arizona’s cities, leading to more homes being built.
From my point of view, these new laws in Arizona are a smart move to deal with the housing shortage. They could help stabilize housing costs, but it’s important to watch how they’re implemented to avoid unexpected problems. Cooperation between the state and local governments will be key to making sure these laws work as planned.
