A new report examining corporate ownership of Phoenix-area housing calls for restrictions on institutional homebuyers, expanded financing for local builders, and changes to federal tax policy. The report also endorses an Arizona proposal from Republican state Rep. Nick Kupper (R-LD25).
The American Economic Liberties Project’s September case study, authored by Laurel Kilgour and Allie Gross, argues that consolidation in banking and homebuilding, purchases of foreclosed properties, and the expansion of build-to-rent communities have contributed to difficulties facing prospective homeowners.
For more on the investor takeover of housing in Phoenix, read the full brief Phoenix Case Study: Single-Family Rentals, Build-to-Rent, and Undoing the Corporate Capture of Housing here: https://t.co/bQtNUr6fLX
— American Economic Liberties Project (@econliberties) September 9, 2026
The nonprofit, which advocates against concentrated corporate power, acknowledges that institutional investors did not create the housing supply shortage. Its report contends that investors capitalized on that shortage while changes in financing weakened smaller builders’ ability to compete.
The report’s focus on construction shortfalls follows earlier research covered by AZ Free News in May. The Common Sense Institute identified prolonged underbuilding after the Great Recession as a principal driver of Arizona’s housing shortage, citing annual housing permits that fell from nearly 90,000 in 2005 to approximately 12,600 in 2010 and recovered to about 45,000 by 2019. That study examined short-term rentals such as Airbnb and found no consistent statistical relationship between their growth and home-price appreciation across Arizona communities.
Before the housing crash, Arizona was building at a rapid pace:
• ~400,000 homes built from 2003–2007 After the Great Recession, construction slowed significantly: • ~211,000 homes built from 2010–2019
— Common Sense Institute Arizona (@CSInstituteAZ) April 16, 2026
Phoenix has gained prominence in the institutional rental market in recent years, appearing in Urban Institute research published in 2023. Using 2022 property records, researchers identified 33,406 single-family rental properties held by “mega” rental operators in the Phoenix-Mesa-Chandler metropolitan area, second to Atlanta among the markets examined. The study defined those operators as investors owning more than 1,000 properties across multiple locations. However, the Urban Institute also cautioned that its data should be treated as a sample and that smaller institutional investors were incompletely captured.
A 2024 Government Accountability Office (GAO) review found that institutional investors may have contributed to increases in home prices and rents while helping stabilize neighborhoods after the financial crisis. The GAO said their effects on homeownership opportunities and tenants were less clear because of limited data and inconsistent definitions of institutional investors.
The new Phoenix report also examines build-to-rent developments, where homes are constructed for rental occupancy. Its recommendations include phased sales of institutional holdings, giving prospective owner-occupants and nonprofits an initial opportunity to purchase foreclosed homes, and reducing tax incentives for institutional rental ownership. The authors also recommend financing programs for local homebuilders and taxes intended to discourage holding undeveloped land.
In Arizona, the report endorses Kupper’s House Bill 2325, introduced in January as the “Own Something and Be Happy Act.”
I’m proud to introduce HB2325 the Own Something and Be Happy Act!
The introduced legislation would prohibit covered institutional investors from owning more than 50 single-family homes statewide, bidding during the first 60 days a home is publicly offered for sale, or making bulk purchases. Investors already exceeding the ownership limit would be barred from additional acquisitions and could voluntarily sell properties to comply.
The bill includes exemptions for affordable housing nonprofits, government housing agencies, community land trusts, qualifying homebuilders, and people or entities owning fewer than 50 single-family homes in Arizona. It would also require annual ownership disclosures to the Arizona Department of Housing. The proposed enforcement provisions would allow local prosecutors to act when the attorney general declines enforcement in a particular matter.
“When large investment firms buy up neighborhoods, families lose and prices climb,” Kupper said.
HB 2325 did not receive a hearing in the House Commerce Committee.
At the federal level, the 21st Century ROAD to Housing Act, enacted July 11, includes restrictions on additional single-family home purchases by large institutional investors. Its definition generally covers qualifying investment entities controlling at least 350 homes, subject to exclusions.
The federal purchase restrictions take effect 180 days after enactment. The law includes exceptions for qualifying build-to-rent purchases and other transactions, and it does not require investors to sell homes purchased before enactment.
Arizona’s House delegation split 5–3 on the final version in the June 23 vote. Reps. David Schweikert (R-AZ01), Eli Crane (R-AZ02), and Andy Biggs (R-AZ05) voted against it. Reps. Juan Ciscomani (R-AZ06) and Abraham Hamadeh (R-AZ08) joined Reps. Yassamin Ansari (D-AZ03), Greg Stanton (D-AZ04), and Adelita Grijalva (D-AZ07) in support. Rep. Paul Gosar (R-AZ09) did not vote. Sens. Mark Kelly (D-AZ) and Ruben Gallego (D-AZ) both supported the final Senate version in the June 22 vote.
President Donald Trump said that he would withhold his signature in protest over the Senate’s failure to pass the SAVE America Act, which would require documentary proof of citizenship for voter registration and photo identification for voting. The housing legislation became law July 11 without his signature, following the constitutional review period of 10 days, excluding Sundays, without a veto.
One Republican is competing against two Democrats for two seats in the highly competitive Arizona House of Representatives race in Legislative District 9.
Bradley (Brad) Bettencourt is facing off against Democratic incumbent Lorena Austin and Democratic newcomer Jacob Martinez. Bettencourt fell right in the middle of the pack for voter turnout in the primary election. Austin received about 11,200 votes, Martinez received about 9,300 votes, and Bettencourt received about 10,400 votes.
Bettencourt believes his banking career and budgeting prowess — which he says are evidenced by his role in fixing over $1.5 million in budget errors at his Dobson Ranch community — can bring the Arizona budget off life support and onto the path of recovery.
“I’m running because the numbers have to add up: for our state budget and for the families who live here,” said Bettencourt in a recent news release. “I stepped up when my own community of 5,000 homes discovered more than a million and a half dollars in budget errors and helped get the finances back on track. Arizona families are dealing with rising prices while paychecks struggle to keep up. They deserve a representative who will bring practical solutions, not games or extremes.”
Along with the budget, Bettencourt has his eye on strengthening approaches to the biggest issues facing the state today: water security, housing affordability, educational outcomes and choice, legal immigration, and border security.
Bettencourt generally advises more aggressive government action on Colorado River negotiations, cuts to bureaucratic red tape that impact housing, border security, legal immigration pathways, first responder funding, increased penalties on certain crimes like fentanyl distribution, regular infrastructure improvements, and tax cuts to incentivize family growth.
As for the other priorities, Bettencourt proposed government actions that support the individual freedom to act, like protecting educational choice and increasing educational outcomes through competitive teacher pay and expansions of career preparation pathways for students, and opposing new restrictions or burdens on lawful gun ownership.
Bettencourt is an Arizona native that resided in other states and traveled through Latin America before returning to the Valley. He received his bachelor’s and master’s degrees from Arizona State University, and has previously resided in southern Arizona, where he worked for a bank in Yuma and Nogales.
So far, Bettencourt has been outraised by his Democratic opponents.
His campaign has raised more than $64,000, out of which $29,000 has come from himself.
The other top single donors to his campaign are the Freedom Club PAC, which gave $2,500; Michelle Masters, who gave $2,000; Gary Golka, who gave $1,000; the NFIB Arizona PAC, which gave $1,000; Veronica Law, who gave $1,000; and Don Tapia, who gave $1,000.
Austin has raised more than $104,000. Her top 10 donors are:
AFSCME People, $11,000
Elizabeth Simons, $5,500
Western States Regional Council of Carpenters Legislative Improvement Committee, $5,500
The Next 50 PAC, $5,500
Ross Boucher, $5,400
Jane Fonda Climate PAC, $5,000
Peter Francis, $3,000
Climate Cabinet PAC, $2,500
Int’l Ass’n of Sheet Metal, Air, Rail, and Transportation Workers Local 359 PAC, or SMART PAC, $2,500
Arizona Education Association Fund for Public Education, formerly AZ PAC, $2,000
Martinez has also raised a similar amount at more than $100,000. His top 10 donors are very similar to Austin’s top 10:
AFSCME People, $11,000
Western States Regional Council of Carpenters Legislative Improvement Committee, $5,500
Joseph Rich, $5,500
The Next 50 PAC, $5,500
Jane Fonda Climate PAC, $5,000
Ross Boucher, $3,500
Int’l Ass’n of Sheet Metal, Air, Rail, and Transportation Workers Local 359 PAC, or SMART PAC, $2,500
Climate Cabinet PAC, $2,500
Ironworkers Local 75 PAC, $2,000
United Food & Commercial Workers Local 99 PAC, $2,000
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
A recent campaign ad from the Democrat incumbent governor cost her millions, but critics and past reporting indicate the ad is misleading and takes credit for work done by Republicans.
Gov. Katie Hobbs’ 30-second “Work” ad released last month claimed that she reduced electricity bills, cut red tape to build more affordable housing, and balanced the budget. Critics across the political spectrum assessed these claims as misleading.
Utility rates have increased by more than 25% under the Hobbs administration.
The Arizona Free Enterprise Club calculated based on Energy Information Administration data that utility rates in Arizona have increased by an average of 27% under Hobbs’ tenure. The Arizona Corporation Commission (ACC) sets rates.
The largest donor to Hobbs’ controversial inaugural fund, Arizona Public Service, also wants to increase the utility rates by 14%. That ratemaking case is ongoing with the ACC.
The Hobbs administration imposed more red tape on housing construction that had the effect of imposing a housing moratorium. A court struck down that red tape earlier this year as an unlawful overreach in agency rulemaking, a ruling which has the potential to put Arizona taxpayers on the hook for over $1 billion in compensation claims.
One developer duo, Buckeye Tartesso I and II, already filed such a claim last September with the help of the Goldwater Institute. The duo is seeking over $320 million in compensation for lost value, an amount their demand letter claimed was a compilation of conservative, not maximum, estimates.
Budget talks were repeatedly called off and subjected to a bill moratorium by Hobbs as she tried to impose what Republican lawmakers characterized as unrealistic revenue assumptions, hidden tax increases, and cost-raising policies.
In the thick of budget talks earlier this year, House Speaker Steve Montenegro (R-LD29) commented that Hobbs’ budgeting style was reminiscent of the more liberal-style budgets coming out of California: fiscal approaches which increase government size and create inconsistencies within the tax system. Hobbs held out on securing tax conformity for months to align the Arizona tax code with many of the congressional changes passed under the One Big Beautiful Bill Act
Hobbs has been accused by bipartisan critics of turning her inheritance of a $2.5 billion surplus from former governor Doug Ducey into a $1.6 billion shortfall.
Last summer, a report by the Common Sense Institute Arizona found that state spending outpaced the $3.3 billion in revenues that emerged following the passage of the flat tax in 2023.
Per the Hobbs campaign, the ad buys required millions from her campaign coffers.
Additionally, the Hobbs campaign press release implied that the Spanish-speaking version of her “Work” ad, “No Se Rinde” (“Doesn’t Give Up”), was uniform in its messaging. However, the ads contained key differences that indicated an awareness of Arizona’s split demographics.
Both opened with a characterization of Hobbs’ background as a mother who worked multiple jobs and as a social worker, but differed distinctly in their portrayals of Hobbs’ approach to governance.
The English-speaking ad, “Work,” depicted Hobbs as a budget and policy expert with key wins in electricity bill and red tape cuts, and school lunch and community college scholarship expansions.
The English ad described Hobbs as working fast food and Uber jobs to make ends meet. It included the misleading claims that Hobbs was responsible for balancing the budget without raising taxes, reducing electricity bills, and cutting affordable housing red tape, along with the valid claims that she expanded school lunches and community college scholarships.
The Spanish version of the ad, “No Se Rinde,” depicted Hobbs as a social worker with key wins in medical debt forgiveness, medical cost cuts, and salary boosts. Hobbs forgave $30 million in medical debts early on in her administration.
The Spanish-speaking ad similarly characterized Hobbs as having a background as a working mother, but only highlighted her past Uber driving work and expanded on her time as a social worker as mainly aiding female domestic violence victims. The ad further diverged in describing Hobbs as responsible for canceling tens of millions in medical debt, reducing medical costs with discounts up to 80 percent, and raising salaries.
A Centers for Disease Control report published in 2024 suggested that Latino and Hispanic women have a disproportionately higher risk of experiencing domestic violence: one in three, indicating an occurrence average up to three times higher than white women.
Close to a quarter of all Latinos in Arizona are uninsured, as are nearly half of all illegal aliens, according to a 2022 research analysis from the Latino Policy & Politics Institute. Approximately 80% of Latino families in Arizona reported financial trouble according to recent polling by UnidosUS; nearly half of Latinos across Arizona, California, and Texas reported medical debt in a 2024 UnidosUS poll.
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Republican gubernatorial candidate and U.S. Rep. Andy Biggs (R-AZ05) says Arizona’s affordability crisis cannot be solved by housing policy alone, arguing that water management, utility costs, state trust lands, natural resource development, and election integrity all require a new approach under the state’s next governor.
In an exclusive interview with AZ Free News, Biggs outlined what he described as the core priorities of a potential administration, saying Arizona’s long-term prosperity depends on responsible resource management while restoring confidence in state government.
“The affordability of housing” is the state’s biggest economic challenge, Biggs said.
“It gets attention, but it doesn’t encompass everything that’s related to it,” he continued. “The water issue is massive, and it goes hand in glove with housing.”
Biggs argued that utility costs, water availability, and management of Arizona’s natural resources all contribute to the state’s affordability challenges.
“But the one aspect to this all that’s not being addressed in this administration… is how do you manage the state’s natural resources, including state trust land?” Biggs said. “That is going to be critical going forward on affordability issues in the state and viability of long-term economic success.”
For Biggs, water policy remains central to that vision. Biggs said Arizona must play a far more active role in negotiations over the future of the Colorado River rather than allowing federal agencies to dictate the outcome.
“You have to be engaged,” Biggs said.
He said he has met with officials from the United States Bureau of Reclamation, the United States Department of the Interior, the United States Department of Agriculture, the United States Department of Commerce, and the United States Department of Defense, arguing Arizona’s water allocation should reflect the state’s importance to national food production, semiconductor manufacturing, commerce, and defense.
“I’m encouraging all of them… to redo the environmental impact statement so it actually considers the national food security issue… the national defense sector… and the microchips and the industry,” Biggs said.
He also credited bipartisan work with Democrat Rep. Greg Stanton (AZ-04) to secure additional conservation funding for Lower Basin states and said Arizona’s advocacy helped encourage releases from Flaming Gorge Reservoir to stabilize Lake Powell.
Biggs also called for expanded forest thinning, continued livestock grazing, removal of invasive salt cedar, and responsible development of Arizona’s mineral resources.
“We have 26 of the critical minerals necessary in this state,” Biggs said. “You’ve got to figure out a way to use that and allow for extraction and development in a very rational and sane way.”
Addressing another growing issue, Biggs said he supports data center development but opposes taxpayer incentives.
“I sat down with multiple brokers for data centers and said, ‘Look, here’s the deal. No special breaks. No special benefits,'” Biggs said.
Instead, he said developers should finance their own electrical generation and water infrastructure without reducing resources available to existing residential or commercial customers. “We’re going to allow you guys to develop your power… provided that you do not encroach on current and future commercial and residential users.”
A policy report released by the Goldwater Institute in February warned that Arizona’s growing role as a national hub for data centers could be undermined by municipal regulations driven by concerns over water use, electricity demand, and land use.
On elections, Biggs said restoring public confidence would be among his first priorities if elected governor.
He pointed to Gov. Katie Hobbs’ veto of a Florida-style election integrity bill earlier this year and pledged to sign similar legislation if elected.
“One of the first bills I will sign is that Florida-style election integrity bill in January of 2027,” Biggs said.
Asked about the legal dispute between the Maricopa County Recorder’s Office and the Maricopa County Board of Supervisors over election administration, Biggs declined to side with either party but said he has spoken with both.
“I think both sides truly want us to have a fair, transparent election,” Biggs said. “They need to get this thing sorted out quickly.”
Biggs said he believes Arizona can become “the leader on election integrity” by the end of a potential administration.
The congressman is facing fellow Congressman David Schweikert (R-AZ01), business owner Ken Miceli, and entrepreneur Scott Neely for the Republican gubernatorial nomination in the primary and has centered much of his campaign on affordability, border security, government reform, and economic growth.
Arizona’s housing market continues to face significant affordability challenges despite slowing home prices and rising inventory levels, according to an update released this week by the Common Sense Institute (CSI) Arizona.
The report estimates Arizona faced an immediate housing shortfall of 55,992 units in 2025, while the state’s cumulative long-term housing deficit has reached approximately 110,837 units. According to CSI, current residential permitting trends suggest it could take more than a century to eliminate the existing housing gap.
CSI reported Arizona issued 50,983 residential permits in 2025, representing a 14 percent decline from 2024 and the slowest pace of permitting activity since 2019. The organization concluded that slowing construction activity continues to constrain the state’s housing supply, despite weakening demand in some markets.
“Arizona’s housing market is no longer experiencing the rapid price growth seen during the pandemic-era boom, but affordability challenges remain deeply embedded in the market,” said Glenn Farley, Director of Policy and Research at Common Sense Institute Arizona. “The state continues to face significant supply constraints, and while softer demand has created some short-term relief for buyers, long-term progress will ultimately depend on a sustained increase in housing production and permitting activity.”
According to the report, Arizona’s housing market has become more favorable for buyers in the short term as inventory levels rise and price growth slows. However, CSI stated the shift reflects softer buyer demand rather than substantial improvements in housing availability.
Average home prices in Arizona declined approximately 2.9 percent in 2025, though CSI noted prices remain roughly 11.1 percent above pre-pandemic trends. The report estimated the average home price statewide at approximately $420,900.
Housing prices in Arizona have cooled, but affordability remains deeply strained.
The average Arizona home price is still about $420,900, roughly 11.1% above pre-pandemic levels, according to CSI Arizona.
— Common Sense Institute Arizona (@CSInstituteAZ) May 11, 2026
Mortgage affordability also remains under pressure. CSI estimated that a household would need an annual income of approximately $87,000 to afford the average-priced home in Arizona under conventional underwriting standards.
The organization found Arizona households now require roughly 58 hours of work per month at the average wage to service a standard mortgage payment, compared to approximately 38 hours per month in 2019. CSI estimated only 42 percent of Arizona households can currently afford the monthly mortgage payment on an average-priced home without exceeding standard debt-to-income guidelines. In 2019, approximately 66 percent of households met that threshold.
CSI also reported that Arizona home prices have declined approximately 3.4 percent statewide since June 2024, representing the third-fastest rate of decline nationally during that period.
It assigned Arizona a preliminary “C-” Housing Report Card grade for 2025, down from a “C+” at the end of 2024. The report follows CSI’s earlier affordability rankings that identified Arizona among the least affordable states in the country based on housing costs relative to household income.
Farley and CSI Arizona Senior Economist & Research Analyst Zachary Milne, who co-authored the report, concluded, “Arizona’s market is healthier than it was but remains paralyzed by inefficiencies. Prices have stopped rising but also haven’t come down much off their all-time highs. Combined with high interest rates, entering the housing market remains a daunting task for any prospective new buyer. Home permitting is slowing, migration and household formation are down, and the state is losing its luster as an affordable place to move to and create a life.”
