AI Is Not the Culprit Behind Arizona’s Housing Surge

It’s easy to blame a scapegoat for a problem without ever addressing the actual cause.

Debbie Lesko has voiced concerns regarding Arizona’s rising housing prices, which she attributes to governmental spending and flawed policies from the previous administration. Over the past four years, significant federal spending increased inflation, affecting essential goods and services. Prices for food, gas, and housing have surged, compounded by restrictive water policies that further limit housing development in Arizona.

Despite widespread belief that fiscal mismanagement is the root cause of these price hikes, the Arizona Attorney General and the Department of Justice, under the Biden administration, have pursued a lawsuit against property management software, claiming it has contributed to the rising costs. The Arizona Attorney General’s Office recently communicated with the newly appointed Attorney General, Pam Bondi, urging continued pursuit of this legal action.

This AI-driven software helps landlords adjust rental prices based on market conditions, but it has become a target for blame as rents increased from 2021 to 2024. This narrative shifts responsibility away from policy failures, casting faceless corporate entities as villains in the story of inflation and housing market strain.

In examining the Phoenix market, one finds that the average rent stands at $1,338 per month, which is actually 14% lower than the national average according to Apartments.com. If property management software were solely responsible for rent increases, would prices in Arizona be lagging behind many other regions?

The spike in inflation was primarily fueled by excessive federal spending, which devalued the dollar and heightened demand amidst faltering supply chains. Low borrowing costs nurtured speculative investments in real estate, yet systemic issues like zoning regulations and construction costs have hindered the supply of new housing, failing to keep pace with population growth and demand.

The tendency to deflect responsibility for policy missteps is longstanding, leaving the public to bear the consequences. This lawsuit exemplifies the trend; until a prioritization of accountability for true inflation drivers is established, superficial scapegoats will continue to dominate discussions while the core issues remain unaddressed.

The Trump administration acknowledges these systemic issues and aims to tackle wasteful spending and mismanagement, which Lesko identifies as key factors in the affordability crisis.

The looming possibility that the DOJ will abandon this lawsuit against property management software aligns with the Trump administration’s commitment to address root problems rather than using political excuses. Such an approach is not only just but essential for making housing more affordable in Arizona.

This outlook is encouraging for Arizona’s residents as they strive for more attainable housing options.

Debbie Lesko currently serves on the Maricopa County Board of Supervisors, representing the 4th district. She previously held a congressional seat for Arizona’s 8th district from 2018 to 2025.