STATE CAPITOL, PHOENIX – An independent report issued by the Common Sense Institute Arizona on Monday found that “maintaining [Governor Hobbs’] homebuilding moratorium in the Phoenix Active Management Area (AMA) over the next decade could cost the state $2 billion in potential real GDP.”

The report noted that the Governor’s moratorium results in “reduced homebuilding” and “higher home prices elsewhere.” It also found that the ongoing effects of the moratorium could lead to the loss of 18,654 jobs, a population decline of 74,354 people, and a $3.9 billion reduction in personal income by 2035.

“The independent report from the Common Sense Institute verifies what Arizona House and Senate Republicans have been saying all along,” said House Majority Leader Michael Carbone. “Governor Hobbs’ water policies led to an illegal housing moratorium that created an artificial growth boundary around the greater Phoenix metropolitan area. This moratorium is a driving force behind skyrocketing new home prices and shrinking availability for hardworking Arizona families. House and Senate Republicans have already proposed solutions that preserve water and allow the moratorium to be lifted immediately. There is no longer any justification for continuing a policy that hurts our economy and worsens the housing crisis.”

“As my seatmate Representative Nick Kupper stated last week, maintaining the Governor’s current housing moratorium — and its potential $2 billion economic impact — is now a political choice, not a regulatory necessity,” Majority Leader Carbone continued. “It’s time Governor Hobbs work with Republican lawmakers on commonsense legislation to lift the moratorium and increase the supply of desperately needed new for-sale homes in our state.”

The full report is available here.

Michael Carbone is a Republican member of the Arizona House of Representatives serving Legislative District 25 which includes portions of Yuma, Maricopa, and La Paz Counties. He also serves as House Majority Leader. Follow him on X at @MichaelCarbone.