An independent report from the Common Sense Institute Arizona has raised concerns about the economic effects of Governor Hobbs' housing moratorium in the Phoenix Active Management Area. The report predicts that if the policy continues, the state could see a $2 billion reduction in real GDP over the next decade. It also forecasts a loss of 18,654 jobs, a decrease in population by about 74,354 people, and a $3.9 billion decline in personal income by 2035. The study suggests that the moratorium has led to less homebuilding and higher home prices outside the restricted area, according to the Arizona House of Representatives.
On Monday, House Majority Leader Michael Carbone criticized the Governor’s strategy, stating, "House and Senate Republicans have already proposed solutions that preserve water and allow the moratorium to be lifted immediately." He also pointed out that "Governor Hobbs’ water policies led to an illegal housing moratorium that created an artificial growth boundary around the greater Phoenix metropolitan area." Carbone argued that "This moratorium is a driving force behind skyrocketing new home prices and shrinking availability for hardworking Arizona families." The ongoing debate calls for both political sides to find a solution that balances water sustainability and housing needs, as reported by the Arizona House of Representatives.
Carbone stated that “maintaining the Governor’s current housing moratorium — and its potential $2 billion economic impact — is now a political choice, not a regulatory necessity," a view shared by Representative Nick Kupper. Economic forecasts predict negative effects on the state’s housing market and fiscal health, leading to calls for a bipartisan solution. Carbone’s office has contacted Governor Hobbs about lifting the moratorium, but a response is still awaited, as stated by the Arizona House of Representatives.
