ARIZONA — A recent report by research firm MetroSight is shedding new light on the impact of local and state regulations on housing costs, suggesting that simplifying the rules could help bring down rental prices across Arizona and beyond.
Commissioned by the National Apartment Association and National Multifamily Housing Council, the study analyzed data from 2,500 rental properties across 50 major metro areas. It found that complicated regulatory environments—such as those that limit eviction options or restrict how landlords screen potential tenants—are linked to higher costs for property owners, reduced housing supply, and increased rents.
Regulatory Burden Drives Up Costs
According to the report, the United States added 15.6 million households since 2012, but only 13.3 million homes—including apartments and condos—were built in the same period. This shortfall has strained housing markets nationwide.
Author Issi Romem highlighted specific local rules that contribute to rising operational expenses, including:
Eviction restrictions, such as just-cause eviction rules that prolong removal processes
Applicant screening limitations, particularly laws that prevent landlords from evaluating a tenant’s source of income
Delayed lease processes, increased turnover, and higher vacancy rates in heavily regulated markets
In areas with strict eviction laws, property management costs rose by 6%, the study noted. Furthermore, rules that delay or restrict tenant screening procedures led to longer vacancies and higher operational headaches for landlords.
Unified Regulations Could Offer Relief
However, the research also points to a promising solution: regulatory consistency at the state level. In states that restricted cities from imposing a patchwork of different housing regulations, landlords reported lower costs, higher revenue, and increased investment in rental housing.
The Arizona Multihousing Association (AMA), which advocates on behalf of the rental housing industry, said the findings support their ongoing efforts to work with state and local leaders to streamline rules and boost rental housing supply.
AMA representatives argue that cutting red tape could help address Arizona’s affordable housing shortage—a message they’ve been pressing for years.
A Path Toward Lower Rent
The MetroSight study reinforces the idea that regulatory simplification isn’t just about helping developers—it could ultimately benefit renters by encouraging more construction, reducing landlord costs, and slowing the rise in monthly rents.
By focusing on clear, consistent, and fair regulations, Arizona could create a housing environment that’s both business-friendly and affordable for more residents.
