PHOENIX — Last month, Arizona Governor Katie Hobbs signed a new law allowing homeowners in Arizona cities with at least 75,000 people to build casitas in their backyards. The governor said it was an effort to create more affordable housing options in the state.
Now that it has been signed, ABC15 is following up and find out what you need to know if you're wanting to build one yourself.
Up until now, there were restrictions on what type of smaller home that was allowed to be built and who was allowed to live in it.
“A lot of the rules honestly, were basically saying you can have a structure on your property, you just can’t have a fully livable kitchen," said Jared Amzallag, co-founder of Minimal Living Concepts. "So that was their kind of way to prevent people from living in there full time.”
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Amzallag builds casitas for a living. He says this new law overrides all of that, which means kitchens are allowed. Anyone can live in one, not just a family, and you're allowed to advertise it as a long-term or short-term rental. It's something critics have had an issue with as a large amount of Airbnb's take over Arizona cities. A reminder, if you do want to rent out your home as a short-term rental, depending on which city you're in, there are specific requirements to register your home.
"It can definitely add more inventory, and it's going to add additional rental units to the market," Amzallag said.
Amzallag says if you're looking to build one, it could cost anywhere between $150,000 and $250,000. With that big of an investment, he recommends doing your due diligence in finding a reputable builder.
“There are a lot of secret costs that could be involved. If they don’t share them with you up front, once you start down that process, they could surprise you and then you’re locked into that contract," he said.
Amzallag says he's seeing an increase in people building casitas for their aging family members, something he believes the new law will add more of. He says because of high mortgage rates, families are choosing to build on their existing properties, as opposed to buying second homes.
