The Permit Freedom Act: A Proven Solution to America’s Housing Crisis

Across America, affordable housing is increasingly out of reach, as onerous government policies make it harder to build homes—driving up prices and limiting supply. But a reform called the Permit Freedom Act is showing the country how to fix it.

A new report by the Common Sense Institute (CSI) found that thanks to Arizona’s 2023 Permit Freedom Act—a law developed by the Goldwater Institute—permit timelines dropped from 200 days to just 126, on average. In cities like Chandler and Mesa, delays fell by 49% and 64%, respectively. In Phoenix, wait times dropped by over 12%. This one 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.

Under the law, cities must approve permits automatically if they fail to act within a reasonable timeframe. No more arbitrary holdups or endless design reviews—just clear deadlines and faster decisions. It’s a reform that is desperately needed. “Economic implications are clear. Faster permitting leads to more housing supply, which can help lower costs,” CSI reported. A national study found that building regulations add $100,000 to the price of a new home—costs that hit entry-level housing the hardest.

The consequences of inaction are dramatic. Data show a sharp decline in first-time homebuyers, while the average age of buyers continues to rise.

“The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash,” said Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors. “First-time buyers face high home prices, high mortgage interest rates, and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers. Meanwhile, current homeowners can more easily make housing trades using built-up housing equity for cash purchases or large down payments on dream homes.”

These national trends aren’t the result of bad luck. They’re the product of broken systems riddled with government overreach. Arizona is a case in point, where a regulatory stranglehold has helped drive a statewide shortage of more than 50,000 homes. Builders navigating Arizona’s convoluted permitting system often wait over 300 days to bring a home to market—adding more than $100,000 to its cost. This regulatory burden disproportionately harms first-time homebuyers, young families, and working professionals—exactly the groups we should be encouraging to settle down and help strengthen our communities. But now, thanks to the Permit Freedom Act, the tide is turning in Arizona.

Goldwater’s reform shouldn’t be just an Arizona story—it can work everywhere. Now imagine these impacts nationwide. Think of the young families who could finally achieve the American Dream.

Restoring common-sense principles like timely decision-making and clear, objective rules would alleviate housing shortages nationwide—and the Permit Freedom Act is the proven answer. It’s time for other states to embrace Arizona’s success and reaffirm a fundamental American truth: freedom builds faster.