‘Starter Homes’ bill threatens Arizona neighborhoods

6 Min Read
Mary Crozier

This legislative session has seen several bills snake their way through the Arizona Legislature, threatening to exacerbate Arizona’s affordable housing crisis and damage neighborhoods like North Central Phoenix. Thankfully, many have been defeated or stalled, but the Starter Homes bill (SB1229) remains. 

I want to be very clear: We need affordable housing solutions. But we can’t make the problem worse by taking shortcuts. 

Strong neighborhoods are the backbone of thriving cities and communities. Zoning isn’t just about land use — it’s about creating, maintaining and protecting a community where families can put down roots, invest in their homes, and contribute to the local economy. Well-zoned neighborhoods allow for the effective allocation of public services such as police, fire protection, sanitation and schools. 

We need responsible growth and development paired with new laws that remove obstacles to housing affordability. Unfortunately, our Legislature has created rather than reduced barriers to affordable housing. Arizona is one of only seven states that prohibit local governments from enacting mandatory inclusionary zoning. State statutes prevent counties and municipalities from passing any land use regulations that make development project approval contingent on the construction of housing that will be rented or sold at an affordable rate. Arizona statute forbids restrictions on rent prices or rent increases. If the Legislature focused on allowing inclusionary zoning, then it is highly likely that this alone would help solve the affordable housing crisis.

But, recent housing bills in the Legislature do nothing for affordable housing or common-sense zoning. Instead, they weaken local control over community planning and disregard residents’ investments in their communities. Some of the bills we saw this year would override existing zoning protections and open the door for construction that doesn’t fit the existing character of historic neighborhoods. These bills have no regard for infrastructure limitations in older neighborhoods and the impracticalities of extensive development. SB1229 incorrectly blames city zoning for housing issues without addressing the real causes of housing affordability. Worst of all, the legislation ignores state constitutional provisions regarding municipalities and threatens to destroy historical communities. 

If one-size-fits-all bills like this pass, it promises colossal changes for neighborhoods across the state. Say goodbye to local control and watch as historic and single-family homes are replaced with higher-density apartments, duplexes, triplexes, and fourplexes. Watch as party houses and rental homes monopolize areas that could benefit single-family residents and drivers of our local economy. Remember Billy Joel’s No Man’s Land? The bottom line here is that our neighborhoods lose.

Who wins? Out-of-state investors and developers. They will have gained the ability to build what they want, where they want, without local oversight. Between 2021-2023, house prices increased by 56% when investors bought one out of every four homes for sale. Short-term vacation rentals have also inflated the value of homes. With no restrictions on these factors, guess who will be buying up the new builds. This dangerous concept lines the pockets of a few at the expense of many and doesn’t fix affordable housing. 

As cities grow, it is crucial to recognize the importance of maintaining strong, locally controlled zoning policies. Neighborhood leaders and residents offer practical insight but are often excluded from legislation. Ensuring thoughtful development while preserving the integrity of existing neighborhoods is the key to successful growth and leaves a positive mark on the community. The irony is that our local relationships and expertise could help solve the affordable housing deficit in Arizona. But instead of being brought into the conversation, proponents of harmful bills label concerned property owners and residents as anti-development NIMBYs (“Not In My Back Yard”) as part of disinformation campaigns to crush opposition to ram bills through.  

SB1229 would prohibit cities from requiring specific features, amenities and other design elements of a home with the goal of building smaller homes that fit with the budget constraints of first-time homebuyers. A survey commissioned by the League of Arizona Cities & Towns found that 73% of respondents have the most confidence in their local city or town to determine housing needs for the community instead of the Legislature. 85% of respondents wanted local residents to have input on how their community is developed, and 77% of respondents agreed that more affordable housing is needed in their communities.

Instead of just checking what looks like an affordable housing box, legislators should carefully assess proposed housing bills and ask themselves, what are the consequences of passing statewide legislation? Previous legislation has hindered affordable housing in Arizona. Let’s not make the same mistakes again by superficially passing housing bills that will destroy the very neighborhoods that are the bedrock of our cities and towns. 

More information on the Starter Homes can be found at this link: https://www.ncpha.org/news

Mary Crozier serves as president of the North Central Phoenix Homeowners Association.

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