Moving to Princeton, TX: What the 120-Day Moratorium on New Home Builds Means for Buyers

Table of Contents

• Intro
• Princeton's 120-Day Moratorium on New Builds
• Princeton's Location
• Why the Moratorium is Happening
• What the Moratorium Means for Builders
• What Could Happen After the 120-Day Moratorium
• The Strain on Infrastructure and Utilities
• Implications for Future Growth and Homebuilding
• My Educated Guess on Pricing and Starts
• Potential Price Increases Due to Delayed Permits
• Is it a Good Time to Buy in Princeton?
• Current New Construction Homes in Princeton
• Builder Breakdown and What to Watch
• Tips for Buyers Moving to Princeton, TX Right Now
• Current Deals and Opportunities
• Housing Shortage and Potential Impacts
• Final Thoughts
• FAQs

Intro

Princeton, Texas, one of the fastest growing cities in America, has paused new residential permits for 120 days. If you are considering moving to Princeton, TX this year or in early 2025, this pause matters. Rapid growth creates great opportunity, but it also exposes strain on utilities, roads, and emergency services. Understanding how the moratorium works and what it means for pricing, inventory, and your timeline will help you make better decisions.

VIEW HOMES FOR SALE IN PRINCETON, TX

Princeton's 120-Day Moratorium on New Builds

The city council approved a temporary moratorium that blocks new residential construction permits for 120 days. That action gives city staff time to draft updated zoning, subdivision, and roadway plans. The goal is understandable: the population surged roughly 22% in one year and long-range planning documents that were meant to guide growth through 2050 have already been eclipsed.

This moratorium does not stop every active build. Any project that already has permits in hand can continue. Builders and developers who submitted and received approvals before the moratorium can finish those homes. What stops is pulling new permits for projects that haven’t started the permit stage yet.

Princeton's Location

Princeton sits north of McKinney, near Lake Lavon, and along the booming 380 corridor that stretches across the northern Metroplex. That corridor connects Prosper, Little Elm, and other fast-growing suburbs. The highway and commuter patterns explain a lot of the demand that is pushing people toward Princeton.

The combination of relatively low property taxes (even counting MUDs and PIDs), good schools, and available land makes Princeton an attractive destination for anyone moving to Princeton, TX. But with fast growth comes pressure on infrastructure.

Why the Moratorium is Happening

City leaders say utilities and roads are operating at or beyond capacity. Wastewater and potable water systems require upgrades; roads are congested. The police department reported it needs roughly 30 additional officers to meet demand created by population growth. The city intends to use the 120 days to buy some breathing room and re-evaluate how and where to allow future development.

When planning documents written in 2019 assumed a measured growth curve through mid-century, reality outpaced those projections. That mismatch forced a governance response: slow permit approvals so infrastructure planning can catch up.

What the Moratorium Means for Builders

Developers who already cleared plat approvals and have sold lots to builders will be partly insulated. If a builder has a permit in hand, that build can continue. The restriction hits future starts: new permit applications must wait. For production builders who rely on steady permit flow, that pause affects cash flow and holding costs.

Many subdivisions were approved years ago. Developers paid for infrastructure—roads, detention ponds, water, and sewer—assuming a predictable cadence of lot sales. If that cadence pauses, developers and builders still pay holding costs: interest on land loans, taxes, and the expense of carrying undeveloped lots. Those costs often get pushed down the line.

What Could Happen After the 120-Day Moratorium

A short moratorium that produces clear, executable infrastructure plans could stabilize growth and produce smarter development. A drawn-out process that simply delays permits may create scarcity on the front end. Scarcity tends to push pricing upward. When builders eventually resume full-scale starts, they may pass along the added carrying costs to homebuyers.

Historically, early phases of subdivisions sell at a lower price than later phases because developers and builders price initial phases to attract buyers and create momentum. Interrupting permit flow can shift that balance and compress available inventory in lower-priced phases.

The Strain on Infrastructure and Utilities

Utilities, roads, and emergency services are the practical bottlenecks. Water and wastewater systems have physical capacity limits; expanding them requires funding and time. Road widening, traffic signals, and intersections take coordination between city, county, and state entities. Hiring and training police officers also takes months.

Because infrastructure projects take time and money, a 120-day pause is a tactical step. It buys council and staff time to prioritize projects, seek funding, and update zoning to guide growth to places that can better absorb it. That said, infrastructure upgrades often extend well beyond 120 days.

Implications for Future Growth and Homebuilding

Long term, the moratorium could force smarter growth patterns: higher standards for utility extensions, more thoughtful road networks, and better phasing of developments. Short term, it creates uncertainty. That uncertainty affects:

• Builders who cannot pull new permits and therefore face inventory timing issues.
• Developers who are carrying lots and infrastructure costs.
• Buyers who were counting on new-phase pricing or new inventory to close a timeline.

If you are moving to Princeton, TX, flexibility will matter. Buyers who can pivot to existing builds or move-in ready inventory will have an easier time than those tied to a specific new phase that may be delayed.

My Educated Guess on Pricing and Starts

Expect a couple of outcomes. First, builders will continue working on permitted homes. Second, the supply pipeline of new starts will slow as existing permits are used up. When that happens and demand remains, prices will likely creep upward. Exactly how much depends on the length of the moratorium, whether it is extended, and how quickly infrastructure projects are funded and executed.

For anyone moving to Princeton, TX with a long-term horizon, buying into a stable phase now could be appealing. For buyers with tight timelines or concerns about city services, proceed cautiously. The tradeoff right now is between getting in early while prices are relatively lower versus the risk of living somewhere where utilities and services are stretched.

Potential Price Increases Due to Delayed Permits

When permit flow stops, builders with available inventory may raise prices to cover holding costs or to reflect that the market has fewer options. Price increases can also reflect normal phase-to-phase development increases that happen regardless of moratoriums. If builders who specialize in production homes are most affected, first-time buyers may face the biggest hardship as entry-level inventory becomes constrained.

Is it a Good Time to Buy in Princeton?

That depends on your goals. If you are moving to Princeton, TX for long-term appreciation and you can tolerate possible short-term congestion in services, buying now may lock in a reasonable price before potential increases. If you need services to be immediate and reliable, or if you fear protracted delays, consider alternatives in neighboring towns where infrastructure is less strained.

Builders are offering deals right now. As the market goes into the final quarter of the year and early 2025, incentives increase: list price reductions, closing cost contributions, and rate buydowns. If you work with an agent who understands new construction, you can often get a very competitive package even in this environment.

Current New Construction Homes in Princeton

At the time the moratorium took effect, there were approximately 214 builder inventory homes actively listed on MLS. That likely represents 70 to 75 percent of what is actually on the ground, since not every builder lists everything on MLS. Real inventory could be in the 300 to 350 range.

Which builders are worth looking at and which to avoid? Local knowledge matters. Some national builders offer consistent quality and decent warranties. Other production builders may cut corners on finishes like shower materials or interior trim. Skipping a builder you distrust will save future headaches.

Builder Breakdown and What to Watch

Every neighborhood has different builders and different product lines. Here are practical guidelines when comparing builders in Princeton:

• Look for transparency on warranty processes and post-closing service.
• Check energy efficiency measures like spray foam insulation, which reduces long term costs.
• Ask about finish materials that matter to you—tiled showers versus plastic inserts, higher grade cabinets, trim levels.
• Understand closing triggers

Examples of builders worth a look include established national brands that maintain consistent quality. For first-time buyers, product lines from volume builders that offer incentives can be attractive, provided you inspect finishes carefully.

Tips for Buyers Moving to Princeton, TX Right Now

Practical advice for those who are moving to Princeton, TX in the next 6 to 18 months:

1. Be flexible on timing. Expect potential delays if your purchase is tied to a new permit that has not been issued yet.
2. Consider inventory homes. Move-in ready or nearly complete homes carry less permit risk.
3. Negotiate incentives. Builders often offer closing cost help, rate buydowns, and price reductions at the end of quarters.
4. Ask detailed questions about infrastructure in the subdivision—how is water served? What are the MUD obligations? Who maintains common areas?
5. Hire a buyer’s agent experienced in new construction. We can identify realistic timelines and negotiate builder incentives. Contact me at 469-707-9077 or book a time on my calendar.

Current Deals and Opportunities

Even with the moratorium, there are deals to be found. Builders want to close homes and often sweeten offers: tens of thousands off list, plus closing cost contributions and rate buydowns. Realistic expectations help you find genuine value. Asking for reasonable concessions and working with a negotiator who knows how new construction incentives work will increase your odds.

Housing Shortage and Potential Impacts

There is a national and regional housing shortage. Stopping starts in one place does not remove demand. A moratorium can create localized scarcity and pressure neighboring cities. Policymakers must balance the need to build more homes with the need to maintain livability—roads, water, police, and schools all have to scale with population.

For anyone moving to Princeton, TX, this means the market is dynamic and sometimes messy. Over the long run, well-planned growth benefits everyone. In the short run, expect growing pains and plan accordingly.

Final Thoughts

Princeton’s 120-day moratorium is a clear signal that growth has outpaced planning. If you are moving to Princeton, TX, the moratorium changes the landscape but does not eliminate opportunities. Permitted homes will proceed, inventory exists, and motivated builders are offering incentives. The right move depends on your timeline, tolerance for risk, and whether you prioritize being in early phases or want a move-in ready experience.

Smart buyers will do three things: research builders, be flexible on timing, and work with someone who understands both the new construction process and local government dynamics. That combination will help you secure a home that fits your goals while navigating whatever delays the moratorium creates. If you need help buying a home, contact me at 469-707-9077 or book a time on my calendar.

SEARCH FOR NEW CONSTRUCTION DEALS IN DFW

FAQs

How long will the moratorium last and can it be extended?

The initial moratorium is 120 days, intended to carry through the end of 2024 into early 2025. City councils can extend moratoriums or modify them depending on planning and infrastructure progress. Watch city communications for official updates.

Will homes with permits in hand still be built?

Yes. Any residential project that already has permits can continue construction. The moratorium prevents new permits from being issued during the specified period.

If I’m moving to Princeton, TX, should I pause my home search?

Not necessarily. If your timeline is flexible, you can wait for clarity. If you need a home soon, focus on move-in ready inventory or permitted builds. Working with an agent experienced in new construction is essential to understand which options are unaffected.

Will home prices increase because of the moratorium?

Possibly. A temporary reduction in new permit activity can create localized scarcity, especially at entry-level price points. If demand remains strong and permit flow is restricted, prices can rise when builders resume starts.

What infrastructure issues caused the moratorium?

Key issues include water and wastewater capacity, roadway congestion, and staffing shortages in emergency services. The city intends to use the moratorium to update zoning, subdivision standards, and roadway plans to manage future growth better.

READ MORE: The Secret to Buying a Home in 2026 in Dallas Fort Worth with Builder Buydowns