In Arizona, a dispute is emerging over water policy and its impact on the state's housing market. Arizona House Majority Leader Michael Carbone is criticizing Governor Hobbs for contributing to the housing crisis through her water policies. This issue is also part of a lawsuit filed by House Speaker Steve Montenegro, supported by the Home Builders Association of Central Arizona and the Arizona Senate. The lawsuit challenges the Arizona Department of Water Resources over an alleged illegal 33.3% tax on groundwater, which Carbone claims is making housing more expensive in the state, according to the Arizona House of Representatives.
Leader Carbone, a Republican member of the Arizona House of Representatives from Legislative District 25, expressed concerns about Governor Hobbs’ water policies and their impact on Arizona’s housing crisis. Carbone said, "Water policy is land use policy, and land use policy is housing policy. Make no mistake—Governor Hobbs’ water policies are driving Arizona’s housing crisis." He explained that these policies are limiting land development, leading to increased demand in already crowded cities and rising housing prices. A report cited by Carbone suggests that the Governor’s housing moratorium could raise home costs by $19,600 to $23,700, and the proposed groundwater tax could add $5,100 to $7,900 to new home costs.
Carbone defended homebuilders, stating, "Homebuilders have replenished 100% of their groundwater annually since 1995, yet they are the only industry being penalized by the Governor." He emphasized that affordable housing is important to the American Dream and vowed to continue opposing what he believes are unfair water policies. This situation reflects a larger issue in the American West, where expansion and conservation needs are in conflict. The outcome of these legal challenges will impact Arizona's growth and its residents' livelihoods, as reported by the Arizona House of Representatives.
