Arizona's housing market is evolving rapidly, creating promising new opportunities for real estate investors and landlords. With the passage of two critical 2025 housing laws, HB 2447 and HB 2110, Arizona is addressing some of the most significant challenges hindering development.
These bills are designed to improve housing accessibility, increase the Arizona housing supply, and help address the ongoing affordable housing crisis. At Stratton Vantage Property Management, we’re here to help you leverage these changes to grow your investment portfolio.
The Current Landscape of Arizona’s Housing Market
Arizona is one of the few states experiencing consistent population growth and a robust job market, particularly in top cities such as Phoenix, Tucson, and Flagstaff. These trends have led to rising demand for diverse housing types, everything from single-family homes and condos to multi-unit rental property investments.
At the same time, the state faces a supply-demand imbalance. While Arizona sold 9,232 homes in April 2025, a 6% increase from the same month last year, home prices remain high due to limited availability. Homes are selling fast, often above list price, and the median days on market is just 58. Bidding wars have become common, particularly in high-growth communities.
While newly listed homes are up 9.1% year-over-year, the number is still insufficient to meet demand. Additionally, about 37.2% of listings have experienced price drops, suggesting some market volatility. Real estate investors must carefully examine home data and local listings to make informed decisions.
What HB2447 and HB2110 Mean for Investors
HB2447: Speeding Up the Approval Process
HB2447 aims to eliminate unnecessary delays that have plagued real estate development in cities like Phoenix. It does so by:
- Allowing city staff, instead of councils, to approve site plans and permits
- Reducing review cycles and enabling faster project turnarounds
- Improving public records procedures for greater transparency
- Encouraging administrative approval for projects with a positive compliance history
This change enables quicker market entry, reduced holding costs, and a faster path from land purchase to construction. That means better return on investment and more homes reaching the market.
HB2110: Opening Commercial Land for Housing
One of the most innovative laws in years, HB2110 makes it possible to develop multifamily housing on at least 10% of commercial or mixed-use parcels in large cities. This is especially helpful in areas where zoning restrictions have previously prevented housing development.
The bill allows for the adaptive reuse of buildings, such as vacant office spaces, old motor vehicle showrooms, and even firearm sales facilities. These properties can now be transformed into rental homes that serve Arizona tenants, including low-income households.
The Arizona Department of Housing supports these efforts by offering incentives and funding for the development of affordable housing. These include tax credits and financing options for investors ready to address Arizona’s housing challenges.
Benefits for Real Estate Investors and Landlords
Arizona’s new housing laws open the door to significant growth in the real estate market:
- Lower Costs and Faster ROI: Reduced red tape means fewer delays, allowing you to act fast and capitalize on rising demand.
- Diversified Inventory: Commercial conversions expand the range of housing types available to prospective tenants, offering a variety of options from high-end condos to affordable rental properties.
- Addressing the Affordable Housing Crisis: By participating in affordable housing initiatives, you can meet both economic and social objectives.
- Flexible Zoning Benefits: Adaptive reuse reduces the cost and complexity of building from scratch, making projects more accessible to smaller investors.
And let’s not forget, Arizona’s combination of low interest rates, rising median sale price, and strong economic fundamentals makes it one of the most attractive states for real estate development today.
Challenges and Considerations
Despite these benefits, there are challenges. Investors must:
- Ensure compliance with new objective standards, especially around accessibility, affordability, and infrastructure
- Remain vigilant about the risks of overbuilding in specific markets or entering into underperforming locations
- Maintain strong community relations, especially in cities where zoning changes may face resistance
In addition, while HB2447 and HB2110 reduce friction, they don’t remove all requirements. Proper planning, adherence to building codes, and precise documentation remain critical.
How Stratton Vantage Helps You Succeed
At Stratton Vantage Property Management, we understand the Arizona housing market and what it takes to succeed as a landlord or real estate investor. We offer services that help you:
- Navigate changing laws and zoning requirements
- Identify the best investment opportunities based on up-to-date home data and market trends
- Manage and maintain rental properties with a focus on quality, comfort, and value
- Ensure compliance with Arizona’s evolving legal framework
Whether you're exploring new investments or need expert help managing existing units, we're ready to partner with you to grow your real estate portfolio.
Your Next Investment is Waiting
Arizona is taking bold steps to solve its housing challenges, and savvy real estate investors have a unique opportunity to be part of the solution. With reduced project timelines, new access to commercial land, and support from the Arizona Department of Housing, there’s never been a better time to invest.
Explore how Stratton Vantage Property Management can support your journey. From property management to regulatory compliance and investment insights, we’re here to help you make the most of every opportunity.
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Frequently Asked Questions
1. What is the Arizona Affordable Housing Tax Credit?
The Arizona Affordable Housing Tax Credit offers incentives to developers and investors who incorporate affordable housing units into their projects. These credits help offset construction and maintenance costs, increasing affordability and accessibility for low-income renters.
2. How do I determine if a commercial property qualifies under HB2110?
Commercial parcels must be at least one acre (and not more than 20), deemed obsolete for their original use, and located within cities with populations over 150,000. Additional requirements apply, so working with a local expert is crucial.
3. Will housing prices drop due to increased supply?
Price drops may occur in overbuilt markets, but statewide demand continues to rise. Investors should analyze market trends and median sale prices in each city to make informed decisions.
4. What types of housing are in demand in Arizona?
Single-family homes and multi-unit rental property options are both in high demand. Arizona tenants are also seeking affordable housing options in desirable locations that offer access to schools, public transportation, and employment centers.
5. How can landlords benefit from these changes?
Landlords benefit from increased availability of properties, reduced approval costs, and access to rental homes in newly opened areas. With the right strategy, these changes can contribute to higher income, lower vacancy rates, and long-term property value appreciation.
