A bill that aimed to ease zoning laws across Arizona in an effort to tackle the state’s housing affordability crisis is now expected to fail. Known as the “Arizona Starter Homes Act,” Senate Bill 1229 sought to override local residential zoning ordinances to allow for the construction of smaller, more affordable homes statewide. Despite bipartisan backing, the bill is stalled as the state legislature nears the end of its 2025 session. Governor Katie Hobbs and key lawmakers signal there may not be enough time or agreement to move the legislation forward.
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A Push to Override Local Zoning
Senate Bill 1229 proposed sweeping changes to residential zoning across Arizona. It would have prevented cities from enforcing certain regulations that currently limit smaller home construction, including minimum lot sizes and specific design requirements such as garages and screening walls. Proponents argued these regulations drive up housing costs and restrict options for middle- and lower-income residents.
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Supporters Seek Lower Home Prices
The bill was designed to encourage more compact housing development by allowing 3,000-square-foot residential lots across the state. Currently, most single-family homes in Arizona are built on 6,000-square-foot lots. Supporters believed this change would lead to increased housing supply and potentially lower home prices. Republican Senator Shawnna Bolick, one of the bill’s sponsors, stated that the focus should be on helping people rather than protecting restrictive city ordinances.
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Bipartisan Support, But No Agreement
Although the measure had backers on both sides of the political aisle, deep divisions over local control and housing policy kept it from moving forward. Lawmakers have said negotiations are possible, but with the session nearing its end, hopes for a compromise are fading. Governor Hobbs remarked on May 29 that a workable agreement is unlikely this year.
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Governor’s History of Vetoes
This is not the first time a zoning reform effort has hit a wall in Arizona. A similar bipartisan bill passed both chambers of the legislature last year but was vetoed by Governor Hobbs. Her rejection of that bill raised concerns that any future versions would face the same fate unless significant changes were made to accommodate local governments’ concerns.
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Cities Push Back on State Control
One of the biggest obstacles to the bill’s success has been opposition from city leaders who want to maintain local control over zoning decisions. Opponents argue that SB 1229 would lead to a broad deregulation of single-family zoning and limit municipalities’ ability to shape their communities. The idea of statewide preemption over city zoning laws has become a flashpoint in the broader debate over housing affordability and governance.
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Earlier Housing Proposals Also Failed
Senate Bill 1229 is not the only housing-related legislation that has failed to move forward in 2025. House Bill 2191, known as the “Yes in God’s Backyard” bill, proposed allowing churches to develop housing on excess land but was rejected earlier this year. Another stalled bill would have extended Arizona’s Low Income Housing Tax Credit program by five years. The program is set to expire at the end of 2025 and has not yet been renewed by lawmakers.
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High Home Prices Add Pressure
The need for affordable housing remains urgent. Arizona ranks among the top 15 most expensive states to buy a home. The median home sale price in the state is currently $454,600, according to Redfin data. Supporters of SB 1229 argued that removing zoning barriers is one way to make homes more attainable for working families.
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No Clear Path Forward
With the legislative session nearly over and little momentum for a last-minute deal, the Starter Homes Act is expected to stall. While some lawmakers remain hopeful for future discussions, it appears that zoning reform in Arizona will not advance this year. The repeated failure of housing bills highlights the difficulty of balancing affordability with local control and regulatory standards.
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