How to Respond to Development Moratoria Proposals

As the U.S. continues to grapple with a housing shortage, builders eager to increase housing supply increasingly face additional challenges from local governments in the form of residential development permit moratoria. These moratoria — sometimes framed as a temporary pause to fix infrastructure gaps or update zoning, but other times implemented as a response to growth pressure, neighborhood opposition or climate concerns —can have serious consequences for housing supply, affordability and the home-building businesses.

To help members navigate this landscape, NAHB’s Moratoria On Residential Development Permits toolkit report focuses specifically on building and residential permit moratoria. The report is designed to be practical, legally grounded and immediately useful for builders, developers, and state and local HBA staff who may be facing a proposed or adopted moratorium in their community.

What Is Residential Development Moratoria?

The report starts by clearly defining what a residential development moratorium is and the different forms it can take. Not all moratoria look the same, and the details matter. It also highlights an emerging trend toward climate-related moratoria, which are increasingly justified on environmental or resilience grounds but can still function as broad growth controls. The resource then walks through the common reasons governments impose moratoria and the real-world impacts these actions have on property owners, developers, builders, and ultimately home buyers and renters.

From there, the report digs into what makes a moratorium legally permissible versus vulnerable to challenge. It covers issues such as:

• Purpose,
• Scope,
• Duration, and
• How state statutes can either constrain or authorize local moratoria.

This section is especially helpful for identifying red flags early before a pause becomes an open-ended barrier to housing production.

How to Strategically Challenge Moratoria

The latter half of the report focuses on strategy. It outlines:

• How to prepare for a challenge,
• How vested rights may be established,
• What talking points and communication channels can be effective when engaging elected officials and the public, and
• Key legal bases for challenging moratoria, including:
  • Takings claims,
  • State law claims, and
  • Potential civil rights and damages claims.

As moratoria become more common, having a clear, credible resource matters. This NAHB report equips members with the context, tools, and legal framework needed to respond thoughtfully and effectively when residential development is put on hold.