Both parties set their sights on easing Arizona’s housing problems in 2024, but even with bipartisan efforts, came up short. 

Lawmakers on both sides of the aisle were hoping to address high housing costs and shortages in the state’s housing stock. While Gov. Katie Hobbs signed several bills, she vetoed others and some died in the Legislature. 

Of the bills enacted by Hobbs and the Legislature, most addressed accessory dwelling units, multifamily housing and city zoning ordinances.

In August, Hobbs held a bill signing ceremony for four major housing bills that were aimed at lowering housing costs, saying affordable housing was a priority for her administration.

“It’s not just the dream of homeownership that’s out of reach for so many today, it’s even the goal of stable, affordable rental housing,” Hobbs said.

Those four bills required certain municipalities to allow accessory dwelling units, duplexes, triplexes and townhomes to be built on single-family lots, while also amending zoning ordinances to expand multifamily housing and speed up approvals for home construction projects.

While those bills received support from both parties, Hobbs had vetoed a bipartisan measuret, sparking criticism from Republicans and Democrats in the Legislature.

House Bill 2570, known as the Starter Homes Act, would have prevented municipalities with 70,000 residents or more from regulating lot sizes for single-family housing. It also would have prevented municipalities from requiring homeowners to join a home owners association that would dictate the design of a home. 

The bill was sponsored by House Majority Leader Leo Biasiucci, R-Lake Havasu City, and was cosponsored by several Republicans and Democrats. The Starter Homes Act made it through both the House and Senate with bipartisan support.

In a March 18 veto letter, Hobbs said over 90% of people who reached out to her office regarding the bill asked her to veto it due to concerns related to infrastructure, water supply and even legal consequences.

“This is unprecedented legislation that would put Arizonans at the center of a housing reform experiment with unclear outcomes,” Hobbs wrote in the letter. “It lacks the nuance necessary for statewide reform, and I do not believe it is in the best interest of the people in this state.”

Hobbs encouraged lawmakers to work alongside stakeholder groups like the League of Arizona Cities and Towns to come up with legislation that would address the state’s housing challenges without overruling city ordinances. 

Republicans and Democrats alike criticized Hobbs for the veto, with Democratic Sen. Anna Hernandez, D-Phoenix, and Rep. Analise Ortiz, D-Phoenix, accusing Hobbs of capitulating to lobbyists.

“I hope the Governor takes this moment to reaffirm her commitment to solving the housing crisis rather than stand as another obstacle in the way of solutions,” Hernandez said after the March veto. 

Several other housing bills, from both Democrats and Republicans, did not make it out of the Legislature in 2024. Those were aimed at establishing programs for veterans experiencing homelessness, allowing school boards to lease their property for affordable housing and allowing proceeds from the sale of unclaimed property to be deposited in the state’s housing trust fund, among other things.

Lawmakers pledged to bring the Starter Homes Act and other bills back in some form next session, but so far no bills related to housing have been pre-filed ahead of the session starting in January. Republicans have given some indication of bills they might propose, specifically related to certificates of assured water supply for housing developments. 

Hobbs and lawmakers in both parties acknowledged that while 2024 brought significant legislation that will combat the state’s housing crisis, more will need to be done in 2025 to ensure Arizonans have access to housing.