CAAR President’s Report: Insights from Region XI Conference

On Friday, June 27, I had the privilege of representing the Central Arizona Association of Realtors (CAAR) at the annual Region XI conference held at the Arizona Biltmore in Phoenix. This gathering brought together Realtor associations from the Rocky Mountain states, Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming, to discuss critical issues impacting our profession and communities, seeking common ground for effective regional advocacy.

Addressing Housing Affordability

Housing affordability remains a significant concern across all six states. Each state shared unique challenges and innovative proposals aimed at increasing housing inventory, particularly entry-level and workforce housing. Colorado emphasized the urgent need for affordable condos and townhomes, while Nevada outlined initiatives such as loan programs supporting affordable housing projects and proposals to utilize federal land. New Mexico reported significant legislative investments in housing and homelessness initiatives.

In Arizona, affordability challenges revolve largely around supply constraints. Proposed solutions like the Starter Homes Act, which promotes smaller, affordable housing developments, highlight the complexity of addressing local versus state-level regulation, revealing unexpected political alliances that hinder legislation.

Wyoming shared an innovative grassroots approach focused on reducing local regulatory barriers to streamline development, particularly workforce housing.

Institutional Investors and Inventory Challenges

Institutional investment in single-family housing was another prominent discussion point. While Nevada is actively exploring how corporate ownership affects housing supply and market dynamics through legislative studies, Arizona considered legislation limiting corporate ownership of homes, though the proposal was quickly dismissed this session.

Colorado and Utah highlighted the broader implications of institutional investors, notably their impact on rental markets and housing availability, stressing the importance of focusing on supply rather than restrictive ownership measures.

Wildfire Risks and Insurance

Wildfire insurance challenges have intensified throughout the region. Arizona and Colorado emphasized the urgent need for coordinated federal action similar to the National Flood Insurance Program. Arizona recently passed legislation requiring utilities to develop wildfire mitigation plans. Nevada introduced an innovative pilot “regulatory sandbox” to explore alternative insurance solutions.

Utah has taken steps to improve wildfire risk mapping accuracy, significantly aiding insurance availability. The need for proactive forest management was also highlighted as critical in reducing overall fire risk.

Protecting the Realtor Model and Licensing Standards

Recent legislative threats to realtor associations were also reviewed, notably Arizona’s HB 2003, which sought to disrupt the traditional brokerage and Realtor association model. This bill was successfully defeated, underscoring the need for continued vigilance and advocacy to protect professional standards and consumer trust.

Construction Defect Laws

States reported mixed approaches to managing construction defects. Nevada has seen success with its 2015 reforms, significantly reducing frivolous lawsuits and stabilizing the housing market. Arizona opposed recent attempts to shorten the window for defect claims, emphasizing the need for adequate consumer protections balanced with incentives for affordable housing development.

Rent Control Concerns

Rent control remains a contentious topic. New Mexico and Arizona maintain statewide prohibitions, though legislative challenges continue. Nevada successfully conducted an extensive public education campaign, significantly reducing public support for rent control proposals.

Collaborative Advocacy

The overarching theme was the importance of regional collaboration. Sharing resources, data, and strategies emerged as critical to effectively addressing shared challenges like insurance availability, housing affordability, and regulatory threats. Plans are underway for a “legislative playbook” to better coordinate advocacy across Region XI.

The Region XI conference reinforced the value of collective action. Together, we are better equipped to advocate effectively, protect our industry, and advance solutions benefiting our communities.

Dennis Riccio
President, Central Arizona Association of Realtors