Phoenix Says, 'Yes In My Backyard'

06.12.2023 - 04:26 / skift.com / Srividya Kalyanaraman

Phoenix, Arizona is having a YIMBY moment. 

The city council voted Tuesday on allowing accessory dwelling units (ADUs) in the backyards of family homes in Phoenix. The current Phoenix zoning ordinance prohibits the construction of livable structures in backyards. These ADUs, commonly known as casitas, guest houses, or in-law suites, are livable structures built in backyards.

Under these proposed changes, casitas would be permitted to have electricity and plumbing, provided they adhere to specific size and placement requirements and gain approval from the city. Homeowners would be allowed to rent out the structure, but they must reside in either the main home or the ADU.

While state law currently prevents cities from outright banning short-term rentals, city council members are also actively working to convince the Arizona Legislature to reconsider these restrictions. This effort has garnered bipartisan support.

Despite the requirement for the owner to live on the property, some argue that enforcement may be limited due to the city’s staffing constraints. Additionally, the City of Phoenix cannot prevent an investor from purchasing the property and renting both the main home and the ADU as a short-term rental, potentially reducing available housing supply.

This decision comes at a time when the growth rate for single-family home construction in large metro core counties experienced a significant decline, dropping by 24.8%. This negative trend was consistent across both large and small metropolitan areas, with all of them reporting double-digit declines. Notably, the share of single-family home construction in large metro areas, including core and suburban outlying regions, accounted for just 49.8% of all single-family buildings in the second quarter.

So how would this affect the short-term rental market in Phoenix? Demand has been strong this summer, with an annual increase of 34.6%. Interestingly, this surge occurred as Phoenix experienced its hottest month on record in July – the hottest month ever recorded in a U.S. city.

Alterhome, a proptech management company based in Madrid, is set to invest €1.4 million ($1.5 million) in expanding its operations in Mexico. Alterhome has been active in the Spanish market for over a decade, focusing on refurbishing homes and apartments.

Since entering the Mexican market in 2020, it has been managing 14 hotels through various contracts, and now, the company plans to launch vacation rental franchises in five to seven cities by 2024. With this investment, Alterhome aims to reach a portfolio of 3,000 managed homes by 2025 as part of its growth strategy, as reported by

The Australian Capital Territory has seen a significant surge in short-term rentals, including those