Arizona’s housing market reached a critical turning point this year and REALTORS® were at the center of it.

In 2025, the Arizona Legislature passed SB 1611, widely known as the Ag-to-Urban (A2U) Water Legislation, a bipartisan reform that created a new, responsible pathway for converting agricultural land into residential development in areas where groundwater rules had previously limited growth. The Arizona REALTORS® proudly supported this legislation because we believed it would advance two essential goals: protecting Arizona’s water resources and increasing desperately needed housing inventory.

Today, we are seeing the results.

This December, state officials approved the first development under the new Ag-to-Urban program. The project, located in the Southwest Valley, will include more than 800 new homes made possible because SB 1611 created a mechanism for farmland with existing irrigation rights to transition to lower-water-use residential development.

This early success story confirms exactly what the REALTOR® community advocated for at the Legislature: a practical, voluntary, market-based solution that expands housing opportunities while still safeguarding Arizona’s long-term water future.

The Arizona REALTORS® championed SB 1611 for several key reasons:

1. It Helps Create Housing Inventory

For years, some of Arizona’s fastest-growing communities were unable to build new housing because groundwater rules prevented subdivisions from moving forward. SB 1611 provides a lawful, sustainable path for development, helping to relieve pressure in a tight housing market.

2. It Reduces Water Consumption

Irrigated farmland uses significantly more groundwater than residential development. By allowing farmland to convert to housing, Arizona reduces overall water consumption.

3. It Supports Economic and Community Growth

New housing strengthens local economies, supports homeownership, and ensures that REALTORS® can meet the needs of Arizona’s growing population.

The first Ag-to-Urban approval is proof that smart policy, backed by strong advocacy, produces real results. Hundreds of new homes are now moving forward in a responsible, water-efficient way, and more communities will benefit as additional projects are approved.

The Arizona REALTORS® will continue to support policies that expand homeownership opportunities, strengthen our industry, and promote sustainable growth across the state.

SB 1611 is already making an impact, and REALTORS® helped make it possible.