By Jonathan Eberle |
Arizona’s ongoing housing crisis is taking center stage as state lawmakers, led by House Majority Leader Michael Carbone, voice strong opposition to Governor Katie Hobbs’ water policies, accusing them of exacerbating the state’s housing shortage. In a statement released last week, Carbone applauded House Speaker Steve Montenegro for authorizing a lawsuit against the Arizona Department of Water Resources (ADWR) over its adoption of a controversial 33.3% groundwater tax. Carbone claims that this policy is driving up the cost of housing and ultimately harming Arizonans who are already grappling with soaring housing prices.
At the center of the dispute is a policy known as the housing moratorium, which has been criticized for preventing the development of large swathes of land that could otherwise be used to build affordable homes. According to Carbone and other critics, the moratorium was adopted illegally, and it has led to a situation where hundreds of thousands of acres of land remain undeveloped. This, in turn, limits the amount of available space for new homes, driving demand to already crowded urban areas and increasing housing costs.
Carbone explained that “water policy is land use policy, and land use policy is housing policy,” suggesting that the restrictions on land development, while related to water conservation, are having broader economic consequences.
As a result of the moratorium, many Arizonans are facing higher costs when it comes to purchasing new homes. The housing moratorium is expected to increase home prices by $19,600 to $23,700 per house. Additionally, the proposed 33.3% groundwater tax has been predicted to add an extra $5,100 to $7,900 to the cost of new homes. These measures have raised concerns about the affordability of housing, especially in a state already struggling with rapid population growth and a housing shortage.
The Arizona House of Representatives, alongside the Home Builders Association of Central Arizona (HBACA) and members of the Arizona Senate, have joined forces in a legal battle against the ADWR’s actions. The lawsuit seeks to halt the 33.3% groundwater tax, which lawmakers argue is not only illegal but also harmful to Arizona’s housing market. Carbone criticized the governor’s policies, stating that they are not about ensuring water security but rather a means of “government control.”
“The Governor wants to dictate where and how Arizona families live, limiting all future growth to cities and driving up home prices,” Carbone said. “Affordable housing is central to the American Dream, and we are committed to fighting these illegal policies that will only make the housing crisis worse.”
The legal battle focuses on the ADWR’s authority to implement such a tax and whether it complies with state law. Proponents of the lawsuit argue that homebuilders have long demonstrated a commitment to responsible water management, having replenished 100% of the groundwater they use annually since 1995. Therefore, they contend, penalizing the homebuilding industry with additional taxes is unfair and counterproductive.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
