Phoenix Approves Middle Housing Plan: What You Need to Know

The Phoenix City Council recently gave unanimous approval to a new “middle housing” plan, mandated by state law, sparking significant debate across the city. This pivotal decision aims to address the growing housing shortage but has raised considerable concerns, particularly among residents of Phoenix’s cherished historic districts.

Arizona’s “Middle Housing” Law Explained

In 2024, Governor Katie Hobbs signed House Bill 2721 into law, an initiative designed to foster more “middle housing” options across Arizona. This legislation mandates that all cities and towns with populations exceeding 75,000 must permit the construction of townhomes, duplexes, and triplexes on at least 20% of residential lots within each neighborhood. The new state law is set to take effect on January 1, 2026, compelling cities like Phoenix to update their local ordinances to ensure compliance.

Concerns from Historic Neighborhoods

The new housing plan has ignited outrage among homeowners in Phoenix’s historic neighborhoods. Robert Warnicke, current owner of the historic Winnie Ruth Judd home and Vice President of the Phoenix Historic Neighborhoods Coalition, voiced fears that the law could imperil the unique charm of these areas. He worries that historic homes, which contribute significantly to the city’s character, could be torn down, potentially valued more for their land than their architectural or historical significance. Neighborhoods such as La Hacienda and Willo are particularly concerned about modern fourplexes replacing their existing historic structures.

A major apprehension for these communities is the potential loss of their historic district status. To maintain this designation, at least 51% of homes must be considered “contributing,” meaning they are historic and add to the neighborhood’s aesthetic. Renovating or replacing a home can remove its contributing status, putting the district’s overall designation at risk.

City Council’s Stance and Public Debate

The Phoenix City Council unanimously approved the ordinance on November 19, with members stating that compliance with state law was unavoidable. They argued that failure to approve the ordinance before January 1, 2026, could lead to middle housing being allowed on all neighborhood lots “without any limitations”—a vague clause that could potentially remove height and design restrictions for new multi-family housing. Vice Mayor Ann O’Brien expressed frustration with the state law, calling it “poorly written” but emphasizing that Phoenix risked losing state funding and existing zoning rights if it did not comply.

However, Warnicke, a lawyer, contended that the risk of Phoenix losing substantial state funding was unlikely. He suggested that non-compliance would more likely result in a state complaint and an Attorney General investigation, granting the city 30 days to rectify the situation rather than an immediate loss of funds.

Balancing Growth and Preservation

The debate isn’t one-sided. Proponents of the law argue that additional housing is crucial to support Phoenix’s low-income residents and accommodate the city’s rapidly increasing population. Arizona’s population has grown by approximately 500,000 since 2020, with Phoenix itself seeing nearly a 5% increase in the same period. Ashley Harder, founder of Harder Development, acknowledges the dual challenge: while historic districts (which comprise only about 1% of the city) need protection, Phoenix faces genuine housing affordability issues that require growth. Her perspective advocates for “soft” growth that preserves the beauty of historic neighborhoods while adding necessary housing.

City staff clarified during council meetings that the law is not intended to encourage large modern condominiums or apartment complexes. Instead, it aims to promote townhomes and duplexes that still adhere to existing neighborhood restrictions.

What’s Next for Phoenix Residents?

With the ordinance approved, Phoenix residents, especially those in historic districts, are looking at the next steps. Vice Mayor O’Brien has encouraged interested parties to seek a referendum on the ordinance and to contact their state legislators to demand an end to the preemption of local authority. The future landscape of Phoenix’s neighborhoods will depend on how this new housing strategy unfolds and the ongoing engagement of its diverse communities.

Frequently Asked Questions

• What is the “middle housing” plan in Phoenix?
  It’s an ordinance approved by the Phoenix City Council to comply with state law HB 2721, allowing townhomes, duplexes, and triplexes on at least 20% of residential lots in neighborhoods.
• When does this new housing law take effect?
  The state law, HB 2721, takes effect on January 1, 2026. Phoenix’s updated ordinance will align with this timeline.
• Why are historic homeowners concerned about the plan?
  They worry it could lead to the demolition of historic homes, loss of neighborhood charm, and jeopardize their historic district status, which requires 51% of homes to be “contributing.”
• Why did the Phoenix City Council vote unanimously for the plan?
  Council members stated it was out of their hands and they had to comply with state law, fearing that non-compliance could lead to middle housing being allowed on all lots “without any limitations” and risking loss of state funding or zoning rights.
• What are the arguments in favor of the middle housing plan?
  Supporters argue it’s essential for increasing affordable housing options and accommodating Arizona’s and Phoenix’s rapidly growing population.

This new housing plan marks a significant moment for Phoenix, attempting to balance the urgent need for affordable housing with the preservation of its unique historical and cultural identity.

Phoenix Approves Middle Housing Plan