SB 1529 Brings Housing Solutions Within Reach for Arizona Communities

Arizona's economy continues to grow, but the lack of affordable housing has become one of the greatest threats to progress. Employers across the state, from manufacturers to tourism businesses, are struggling to attract and retain workers when housing costs rise faster than wages. Families and young professionals are priced out, and small communities are caught between the need for more housing and the difficulty of approving it.

A New Tool to Cut Through Red Tape

Senate Bill 1529, passed earlier this year, provides a new tool to help communities break through these barriers. By requiring municipalities to establish preapproved housing design plans, SB 1529 reduces one of the most persistent challenges to building: lengthy and unpredictable design reviews.

Under the law, cities must adopt a set of plans for single family homes, duplexes, triplexes, and accessory dwelling units. Each class must include at least three different elevation options. Developers and homeowners who use these plans can move forward without public hearings or subjective review, so long as their project meets objective standards. Municipalities must implement these programs beginning in 2026.

Direct Impact on Workforce Housing

For employers, this matters because it directly affects the supply and cost of housing for the workforce. In too many communities, projects stall or fall through under the weight of delays. That drives up prices and reduces the options available to employees. With SB 1529, builders will have greater certainty and lower costs, making it more likely that new homes, duplexes, and accessory units will be built in the communities where workers are most needed.

Small Towns Stand to Gain the Most

The benefits may be especially significant in smaller towns. Preapproved designs give these municipalities a streamlined process that reduces the burden on city hall while encouraging investment. For local economies, that means more housing can be added without overwhelming already limited government resources. On the same note, smaller communities may not have the resources to create these housing designs. Tempe, Arizona has launched a competition around the best design for ADUs and has offered to waive the initial plan review fee for projects using their standard plans; that is a win-win.

Filling the Missing Middle

This approach also broadens the types of housing available. Arizona has a well-documented shortage of what is often called "missing middle" housing — duplexes, triplexes, and accessory units that fit naturally into neighborhoods and are typically more affordable than large single family homes. By mandating that these housing types be included in the preapproved plans, SB 1529 creates opportunities for communities to diversify their housing stock and provide options for young workers, retirees, and families who are otherwise squeezed out.

Work Remains, But Progress Is Clear

Challenges remain. Housing costs are not driven only by design review. Infrastructure investments, utility connections, impact fees, and land availability are all critical factors. Communities will need to continue looking at these broader issues. There is also a responsibility to ensure the preapproved plans themselves are realistic and affordable. If the designs are overly costly to build, the benefit will be diminished.

Still, SB 1529 is a step in the right direction. It sends a clear signal that Arizona is committed to lowering barriers to housing development and ensuring that our economy has the workforce it needs to succeed. By focusing on predictability and efficiency, the bill aligns with the values of business: clarity, reduced risk, and faster results.

Housing Is Economic Development

For chambers of commerce, employers, and local leaders, the message is clear. Housing is economic development. When workers cannot find a place to live, businesses cannot grow. SB 1529 gives our communities a tool to meet that challenge head on.

As this law takes effect, business organizations should work alongside municipalities to ensure the preapproved plans reflect the needs of real families and align with the demands of the labor market. Done right, SB 1529 will not only increase housing supply but also strengthen the foundation of Arizona's workforce and economy.