Research Note: “Freedom Builds Faster” in Arizona
This is the fourth in a series of Research Notes compiled by our summer intern, Ethan Roth. He has been exploring a number of issues related to regulatory issues that can impact housing availability and costs.
In 2023, Arizona’s Goldwater Institute successfully passed “The Permit Freedom Act,” which sought to reduce building permit times and lessen a supply constraint slowing the construction of affordable housing. The Goldwater Institute explained how cities often use delays in the permitting process to effectively refuse to permit certain building projects that would otherwise be legally permitted.
They warn of the property-rights infringement that is present in long permitting delays. Governments should not be permitted to perpetually restrict property owners from putting their private property to use. These permitting delays increase interest expenses, expose builders to changing material prices, and make marginal starter-home projects less financially viable because of the opportunity cost of time. According to Goldwater, over $100,000 is added to the cost of a house when builders have to wait over 300 days to bring a home to market due to lengthy permitting.
The Permit Freedom Act limits municipalities to a 60-day timeline to approve or deny an application. At this 60-day time limit, the application is deemed approved.
The Act has been effective. Average residential permitting time fell from 200 days to 126 days. Goldwater projects that the reform is “projected to generate 3,800 more homes annually by 2035, cut new home prices by 5%, create nearly 34,000 new jobs, and pump $6.4 billion into the state’s economy.”[1]
In 2026, Nebraska Senator Ballard introduced LB 1094, which would have mandated the by-right approval of homes conforming to zoning codes and land use regulations without discretionary review by local governments. Similar to Arizona’s 2023 “Permit Freedom Act,” it also would have created a 75-day “shot-clock” for permits after which unreturned applications are automatically approved. The bill was not passed in the spring session.
Nebraska can stand to benefit from enacting a reform that prevents municipalities from trampling on the property rights of permit-seekers through long delays and unreliable approval processes. Like Arizona’s example demonstrates, “Freedom Builds Faster.”
[1] https://www.goldwaterinstitute.org/the-permit-freedom-act-a-proven-solution-to-americas-housing-crisis/