Gulf Shores Development Moratorium: What Buyers, Investors, Builders, and Landowners Need to Know
By Meredith Folger Amon
Licensed in Alabama and Florida
Guided by Integrity. Backed by Experience. Search the Gulf with Meredith Folger Amon.
_(800_x_150_px)_(2).gif)
Growth along the Alabama Gulf Coast continues to be one of the most important conversations in real estate. In Gulf Shores, that conversation recently became even more important for buyers, investors, builders, and landowners to understand.
On March 23, 2026, the City of Gulf Shores approved a 12-month pause on accepting certain new development applications while the city begins work on a new city-wide Comprehensive Plan. According to the City, this pause applies to rezonings, new planned unit developments, land uses requiring conditional use permits, and major subdivisions outside approved PUDs that require extending public streets and utilities. Applications already submitted and accepted before March 23 are not affected.
This moratorium does not mean Gulf Shores is closed for business. It means the city is taking time to study growth, infrastructure, transportation, land use, and long-term planning before approving certain types of new development applications.
What Is the Purpose of the Moratorium?
The City has stated that the temporary suspension is intended to help future growth align with infrastructure capacity, transportation needs, public facilities, water and sewer services, and long-term land use policy. The Comprehensive Plan process is expected to include public engagement, a study of current conditions and trends, a draft plan for review, and final adoption.
From a real estate perspective, I see this as a planning pause. Gulf Shores is still a highly desirable coastal market, but buyers and builders need to be more careful when evaluating land that requires a zoning change, conditional use approval, major subdivision approval, or new public infrastructure.
What Types of Projects May Be Affected?
The moratorium is especially important for properties where the intended use depends on city approval beyond a straightforward single-family building permit. The city resolution specifically references rezonings, new planned unit developments, and major subdivisions not within an approved PUD. It also states that these applications will not be accepted for processing until the City Council acts on the Comprehensive Plan or until 12 months have elapsed, whichever comes first.
This may affect certain proposed multi-family projects, townhouse developments, large land divisions, mixed-use concepts, and land purchases where the value depends on changing the current zoning or extending public roads and utilities.
What This Means for Buyers
For buyers, the biggest takeaway is simple: do not buy land based only on what it might become. Buy it based on what can be verified.
A parcel may look attractive because of acreage, road frontage, or location, but the true value depends on what is legally and practically buildable. During this moratorium period, I would encourage buyers to ask more detailed questions before writing an offer, especially on vacant land.
Important questions include:
- What is the current zoning?
- Is the intended use allowed by right?
- Would the buyer need a rezoning, PUD, conditional use permit, or subdivision approval?
- Are utilities already available?
- Are there wetlands, floodplain, access, or stormwater concerns?
- Can a single-family home be built without triggering additional development approvals?
In practical terms, a standard single-family homesite on an existing legal lot may be very different from a land purchase intended for multiple residences, attached housing, or a future subdivision. The details matter.
What This Means for Investors
For investors, the moratorium may change the timing and risk profile of certain Gulf Shores land opportunities. A property marketed as having “development potential” needs to be reviewed carefully. Potential is not the same thing as approval.
I would be especially cautious with any property where the numbers only work if the buyer can add multiple homes, convert use, increase density, or obtain a rezoning. During this period, carrying costs, engineering expenses, wetlands studies, survey work, and delayed approvals could all affect the return on investment.
That does not mean investors should avoid Gulf Shores. It means investors should underwrite conservatively and make sure due diligence periods are long enough to confirm zoning, environmental conditions, access, utilities, and city approval pathways.
What This Means for Builders
Builders should pay close attention to whether a proposed project is allowed under the property’s current zoning and whether it requires any of the application types included in the pause. For builders focused on individual custom homes or spec homes on existing lots, opportunities may still exist, but every parcel should be reviewed on a case-by-case basis.
For builders looking at larger land tracts, multi-lot subdivisions, townhouse concepts, or multi-family residences, the moratorium may create delays or require a different acquisition strategy. It may also place a premium on parcels that already have the correct zoning, existing approvals, available utilities, and fewer environmental constraints.
Wetlands and Land Due Diligence Matter More Than Ever
One issue I am watching closely in the Gulf Shores and Fort Morgan Road area is wetlands. A property may have significant acreage on paper, but if a large portion is wetlands, the usable uplands may be much smaller than expected.
Wetlands can also affect access. If a driveway, road, or utility crossing impacts jurisdictional wetlands, a permit may be required. The U.S. Army Corps of Engineers explains that jurisdictional determinations are used to identify waters regulated under Section 404 of the Clean Water Act, including wetlands. The EPA states that Section 404 regulates the discharge of dredged or fill material into waters of the United States, including wetlands.
In Alabama, ADEM also plays a role in water quality certification for certain Corps permits, and ADEM notes that Corps Section 404 permits cannot be issued without water quality certification or a waiver from ADEM.
That is why I recommend that buyers of vacant land request a wetlands delineation, survey, zoning confirmation, utility availability information, and civil engineering review before becoming fully committed to a purchase.
Why Existing Approvals May Become More Valuable
When a city pauses certain new applications, properties with existing approvals may become more attractive. A site that already has zoning in place, an approved PUD, approved subdivision plat, established utilities, or a clear single-family building path may offer more certainty than a parcel that requires new discretionary approvals.
Certainty has value. In a market like Gulf Shores, where demand remains strong and land is limited, clean due diligence can be just as important as location.
My Advice Before Buying Gulf Shores Land Right Now
Before buying land in Gulf Shores during this moratorium period, I would want the following in writing whenever possible:
- Current zoning confirmation from the City of Gulf Shores
- Confirmation that the intended use is allowed under current zoning
- Clarification on whether the project would require rezoning, PUD approval, conditional use approval, or major subdivision approval
- A current boundary survey
- Wetlands delineation, if wetlands are suspected
- Utility availability letters
- Driveway/access confirmation
- Flood zone review
- Civil engineer review for stormwater, grading, setbacks, and impervious coverage
Final Thoughts
I believe Gulf Shores will continue to be one of the most desirable coastal markets in Alabama. The moratorium does not change the appeal of the beach, the boating lifestyle, the restaurants, the schools, the investment interest, or the natural beauty that draws people here.
What it does change is the level of due diligence required before buying land or pursuing a development concept. Buyers, investors, and builders need to know the difference between what a property is, what a property is marketed to be, and what the City will actually allow.
For me, this is where local guidance matters. A beautiful parcel of land can still be a wonderful opportunity, but the smartest buyers are the ones who ask the right questions before they fall in love with the possibilities.
For Gulf Shores homes, condos, land, and coastal real estate searches, visit SearchTheGulf.com, the Gulf Coast’s premier website for searching all real estate listings on the Gulf Coast.
Meredith Folger Amon
Gulf Coast Expert Real Estate Advisor
Licensed in Alabama and Florida
Call or Text:
Call or Text Meredith on her direct line. 970/389.2905
When it comes to finding the home of your dreams in a fast-paced market, knowing about new listings as soon as they are available is part of our competitive advantage.Sign up to see new listings in an area or specific community. Contact Meredith with any questions you may have.
#searchthegulf #meredithfolger #becausewelivehere
.gif){kind=logo}
Orange Beach & Gulf Shores Condo Rental Income Guide
Orange Beach & Gulf Shores Condo Investment Insights
Orange Beach & Gulf Shores Condo Rental Income: What Buyers and Sellers Should Know
When I look at Orange Beach and Gulf Shores condos through an investment lens, I never look at rental income as one simple number. I look at the full story…
Ask A Question or Sign Up To See New Real Estate Listings Before Your Competition
Posted by Meredith Folger Amon on
Enjoy this blog post? Click here to subscribe for updates
Leave A Comment