A new report from the Common Sense Institute (CSI), possible thanks to data provided by Goldwater Institute, Building Faster, Building Better: Lessons from the Permit Freedom Act, shows that permitting reform is delivering measurable improvements to Arizona’s housing development process—yet persistent regulatory delays and a lack of transparency in many jurisdictions continue to constrain housing supply and economic growth.
One year after the 2023 Permit Freedom Act – a reform designed by the Goldwater Institute to narrow the scope and duration of local residential permit reviews – was signed into law, CSI’s research finds permitting timelines are beginning to shorten in cities that have adopted clear compliance strategies. However, wide disparities remain, and many jurisdictions still struggle with excessive permitting delays, zoning-related slowdowns, and inconsistent public reporting.
Key Findings:
- Statewide project timelines are still lengthy.On average, a new residential project in Arizona takes 319 days to complete from initial permit interaction to final approval, with jurisdictional averages ranging from 270 to 389 days.
- The Permit Freedom Act is having a positive effect.CSI estimates that the law has reduced residential development timelines statewide by 7.1% to 17.7%, but some cities like Mesa and Chandler have seen project timelines drop by up to 64% recently.
- Permit phase delays are improving—but early-phase delays are an outstanding issue.The most significant bottlenecks occur before a permit is filed, during zoning, entitlement, and design review phases, which remain largely outside the scope of the 2023 law.
- Chandler and Mesa stand out for timeline improvements—but have seen steep declines in housing approvals. Despite gains in permitting speed, both cities are issuing far fewer permits than in previous years, indicating broader development slowdowns.
- Transparency is inconsistent.Many jurisdictions still do not provide adequate public data on permitting metrics, despite statutory requirements—limiting accountability and opportunities for improvement.
- Economic implications are clear. Faster permitting leads to more housing supply, which can help lower costs.A national study found that building regulations add $100,000 to the price of a new home, and the fixed nature of these costs disproportionately impacts entry-level housing. CSI estimates that decreasing development times by 25% could lower housing prices by 11% and generate $5.08B/year in additional GDP.
While the Permit Freedom Act is a step in the right direction, this report emphasizes that further reforms—especially around transparency and consistency—will be key to scaling its success and delivering the housing Arizona needs.
“The Permit Freedom Act is a meaningful step forward in addressing Arizona’s housing shortage,” said Glenn Farley, Director of Policy & Research at Common Sense Institute. “Our housing work has consistently shown that permitting and development delays are contributing to our states housing crisis, and it is locally driven. This report shows that permitting timelines have improved post-Permit Freedom, helping reduce barriers that have long slowed housing development. But the most significant delays still happen before a permit is even filed. Tackling these early-stage bottlenecks is the next frontier in boosting housing supply, lowering costs, and sustaining Arizona’s economic growth.”
“The Permit Freedom Act has cut red tape and made it easier to build in Arizona, just as we knew it would,” said Victor Riches, President and CEO of the Goldwater Institute. “That’s great news for homebuilders and for anyone who wants to build a future in Arizona. Now, the Goldwater Institute is working to bring Permit Freedom to other states—replicating this law’s success and breaking down government barriers nationwide.”