How the New Housing Bill Affects Arizona Homeowners

The biggest housing bill in decades just cleared Congress. If you're buying or selling in Arizona, a few key provisions could affect your next move.

Congress just passed the biggest housing bill in decades, and if you're buying or selling here in Arizona, there are a few things in it I want to walk you through.

The bill is called the 21st Century Road to Housing Act. It passed with massive bipartisan support and is currently sitting on the president's desk. The whole point of the bill is to bring down the cost of housing by increasing the supply of homes. That sounds great in concept, but what does it actually mean for you in this market right now?

Our market is more balanced than it's been in years. A couple of years ago, we weren't even talking about the same market. Prices have stabilized right around the $450,000 mark statewide, and that median has held there for a while now. We have more inventory than we've had in years, and homes are sitting on the market for around 60 days instead of 2. You have more time to think about what you're doing than you've had in a long time. But that doesn't mean it's easy for everyone.

Buyers are still competing against corporate cash. One thing that's been really frustrating for families trying to buy, especially in our East Valley cities like Gilbert, Chandler, Mesa, and Tempe, is that some of the most desirable markets are still heavily targeted by institutional buyers.

Companies buying hundreds of single-family homes with cash, driving up prices, and converting them to rentals because the demand is there. This bill puts a stop to that. If a company already owns 350 or more single-family homes, they're done buying. For a market like Arizona, where that kind of activity has been a real factor for buyers for decades, this is a big deal.

More affordable options are opening up. The bill also removes an outdated construction rule on manufactured homes that was adding $5,000 to $10,000 to every single unit. That opens up more affordable options in areas where you can already find new construction going strong, places like Queen Creek, Maricopa, Casa Grande, and Apache Junction.

On top of that, the bill ties federal incentive dollars to local housing production. Communities that build more housing get rewarded, and Arizona is already one of the most active building markets in the country. That positions us well.

"If you've been waiting for the perfect moment, this bill doesn't create one. But it does reward acting with a plan."

Sellers, your fundamentals hold. If you're looking to sell right now, this bill doesn't fundamentally change anything for you today. The Arizona market is moving toward balance, and that's very area-specific. Some of our markets are buyer markets, some are still seller markets, but to be a successful seller right now, you need to be well-priced and well-prepared. Those homes are still selling. What the bill does help with is the buying side of your next move.

If you're selling and also buying, more supply over time, fewer corporate cash offers competing with you, and more affordable options on the other side of your sale all work in your favor. Could it create a little more competition for sellers down the road? Potentially. But it also brings a lot of good options to the table.

Rates and supply won't change overnight. This bill doesn't address mortgage rates. Rates are still sitting around 6.5%, and the Fed may actually increase them this year, depending on inflation. The bill also doesn't build any homes tomorrow. The supply changes it sets in motion are going to take time.

So if you've been waiting for the perfect moment, this bill doesn't create one. But it does point things in a direction that rewards acting with a plan rather than sitting on the sidelines, and that goes for both buyers and sellers right now.

If you want to know how any of this affects your specific situation, whether you're buying, selling, or just curious about what your home is worth right now, give me a call at 480-415-1341 or email me at Katie@Living48re.com, and visit me at living48realestate.com. I'd love to walk you through the numbers and help you figure out what makes sense for your next move.