As 2026 Legislative Session Enters 3rd Month, AMA Battles Wave of Anti-Housing Bills

Estimates may differ, but two things remain clear: Arizona’s housing shortage continues to be a major issue. And as our state’s population continues to grow, we must build more housing to alleviate Arizona’s housing shortfall.

It’s simple supply and demand, as we have said in this space many times. Adding supply and reducing barriers to construction must be part of the solution.

Unfortunately, amid the record 2,121 bills proposed during the 2026 legislative session, the Arizona Multihousing Association has spent time battling no less than 47 housing bills that would have a major negative for the industry. These bills would have increased regulation, raised construction costs, reduced supply, and ultimately made housing more expensive for Arizona families.

The good news? The 48 bills highlighted below have not advanced. Still, they demonstrate how even well-intentioned policies can have the exact opposite effect – fewer residences built, higher costs to build them, more bureaucracy, and higher costs for renters.

Here’s a look inside the numbers.

Restrictions on Who Can Own Rental Housing

Two proposals attempted to restrict who could own rental housing in Arizona.

HB2325, sponsored by Rep. Nick Kupper (R-Goodyear), would have limited the number of rental homes investors could own. While framed as an affordability measure aimed at institutional investors, the bill’s broad definitions could have prevented many build-to-rent (BTR) owners from continuing to operate and forced them to sell existing communities. At a time when Arizona needs more housing investment, policies like this risk discouraging the capital necessary to build new supply.

HB2394, sponsored by Rep. Leo Biasiucci (R-Lake Havasu City), proposed major changes to the residential property tax system. The measure would have effectively doubled property taxes for owners with more than 50 properties in the state, raising concerns about fairness in Arizona’s tax structure and creating uncertainty for housing providers.

New Water Supply Requirements

Two additional proposals focused on groundwater regulations that would have halted new construction or rental communities.

HB2722, sponsored by Rep. Selina Bliss (R-Prescott), would have required residential rental communities within Active Management Areas to obtain a 100-year Assured Water Supply certificate.

HB2077, another Bliss bill, proposed similar requirements for multifamily developments in the Prescott Active Management Area.

Both measures would have expanded the requirements of the 1980 Groundwater Management Act (GWA) to multifamily housing. The GWA was designed as a consumer protection measure for homebuyers making the largest investment of their lives and was intended to apply to single-family subdivisions – not rental housing. Extending these requirements to apartment communities would have added new regulatory hurdles and eliminated new development.

Rent Control and Property Owner Restrictions

Several other proposals would have further constrained housing supply.
HB2718, sponsored by Rep. Betty Villegas (D-Tucson), would have allowed local jurisdictions to impose rent control by limiting annual rent increases. Economists widely agree that rent caps discourage new multifamily development.

Meanwhile, SB1480 and SB1608, sponsored by Sen. Lauren Kuby (D-Tempe), would have restricted property owners’ ability to address criminal activity while imposing rigid indoor temperature requirements.

The Path Forward

These proposals reflect a real concern among lawmakers about housing affordability. However, policies that increase costs, limit investment, or add regulatory barriers risk making Arizona’s housing shortage worse.

If Arizona wants to continue to grow our state’s economy while remaining a place where housing can still be built cost-effectively and efficiently, and families can afford to live, policymakers must prioritize solutions that increase supply – not restrict it.

Here’s the full list of the 47 bills that thus far have not advanced, but could make our housing crisis worse.