Arizona, Texas Propose Legislation for Affordable Starter Homes

The Arizona Senate has passed SB1229, the 'Arizona Starter Homes Act', aimed at reducing housing prices by allowing the construction of smaller homes without certain city regulations. This bipartisan initiative, which passed 16-13, seeks to prohibit cities from imposing minimum lot sizes and design requirements for new single-family homes, thus facilitating more affordable housing options for working-class residents. However, Governor Katie Hobbs has not yet indicated her approval, having vetoed a similar bill last year that she described as potentially leading to unclear outcomes. In Texas, a parallel situation is unfolding as the Senate proposes Senate Bill 15, which aims to lower minimum lot sizes to encourage the construction of smaller, more affordable starter homes amidst a significant housing affordability crisis. This legislative push in both states reflects a growing recognition of the urgent need to address housing shortages and high costs that have made homeownership increasingly unattainable for many residents. Advocates highlight that reducing regulatory barriers could help stimulate the housing market and provide more options for first-time homebuyers.