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New Albany's moratorium on new apartment construction is still in effect. The City Council extended it again on May 21, 2026, for up to another year, and council members said they expect a new zoning code to replace it around the start of 2027. If you own a house in New Albany or anywhere else in Floyd County, here is what the ordinance does, what it does not do and what to watch next.
What the moratorium covers
The ordinance pauses two things inside the city: the construction of non-owner-occupied multi-family housing structures, and the issuance of permits for short-term rentals. That wording comes from the extension bill the council took up in May 2026 (City Council minutes, May 4, 2026). It does not stop single-family construction, owner-occupied projects or the sale of existing homes.
How it started
Mayor Jeff Gahan asked the council for the pause in early 2024 after the city hired the University of Louisville's Urban Studies Institute to study its housing. The city said the study showed New Albany needed more options for home ownership (New Albany City Hall, Feb. 16, 2024). The council passed the original ordinance unanimously in February 2024 and said the pause would give the city time to update its comprehensive plan and zoning ordinance (Louisville Public Media, Feb. 16, 2024).
Census numbers show the gap the city was pointing at. About 55.4 percent of New Albany's occupied homes are owner-occupied, against 70.6 percent for Indiana as a whole. Median gross rent in the city is $1,026 a month and the median owner-occupied home is valued at $180,500 (Census QuickFacts, 2020-2024 ACS).
The two extensions
The first extension came in April 2025, when the council voted 6-2 on third reading to keep the moratorium for another year. Council members Stefanie Griffith and Chris FitzGerald voted no (News and Tribune, April 18, 2025).
The second came this year. The Plan Commission sent a renewal to the council in April (News and Tribune, April 22, 2026). On May 21, 2026 the council passed Bill G-26-03 on third reading, with FitzGerald, Louise Gohmann and Griffith voting no. It became Ordinance G-26-06 (City Council minutes, May 21, 2026).
What comes next
The city has posted an adopted comprehensive plan dated December 23, 2025 (New Albany Comprehensive Plan). The zoning code is the next step. At the May 4 meeting, Planning Director Scott Wood laid out a schedule that puts the new code before the Plan Commission in August and the council in November. Councilman Greg Phipps said that if the schedule holds, the council could rescind the moratorium by January 1, 2027, even though the ordinance allows a full year. He also said the council would come back and repeal it once the code is in place (May 4 and May 21 minutes, linked above). Dates like these slip, so treat January as a target.
Who is against it
Not everyone on the council or in the audience agrees with the pause. At the May hearings, a resident who said he works in the building industry told the council that multi-family projects take years to finance and build, that a pause pushes new rental supply further out, and that the city could write better short-term rental rules instead. Two council members voted no in 2025 and three in 2026. Both sides are in the minutes.
What this means if you own a house there
Nobody can tell you what the moratorium does to your home's value, and we are not going to guess. What it changes is what gets built around you: for now, no new apartment complexes inside the city and no new short-term rental permits, until the new zoning code takes over.
If you need to sell a house in New Albany or anywhere in Floyd County, Roger Choate buys houses directly, as-is, across Floyd, Clark, Scott, Washington and Harrison counties. He reviews the property and the records, then puts a written offer in front of you. If you accept, a title company handles the closing and you pick the date, subject to payoff and title work. There is no seller company fee or agent commission. Your mortgage payoff, liens, taxes, prorations and other settlement items still come out of the price and show on the settlement statement. See how Roger buys houses in Southern Indiana or the full list of areas he buys in.
Frequently asked questions
Is the New Albany apartment moratorium still in effect?
Yes. The City Council extended it on May 21, 2026 (Ordinance G-26-06) for up to another year. Council members said they expect to replace it with a new zoning code around the start of 2027, but that date is a goal, not a promise.
What does the moratorium actually stop?
Two things inside the city: construction of non-owner-occupied multi-family housing structures, and the issuance of new short-term rental permits. It does not stop single-family construction or the sale of existing homes.
Does the moratorium affect selling my house in New Albany?
Not if it is a single-family home you own and occupy. If your property is multi-family or you rent it short-term, ask New Albany Planning and Zoning how the ordinance applies to you before you list or sell.
When does the New Albany moratorium end?
The May 2026 extension allows up to one year. At the May 4 and May 21, 2026 meetings, council members said the new zoning code could be in place around January 1, 2027, and that the council could repeal the moratorium then. Check the council minutes or call the city for the current status.
If selling is on your list, get a written number early so you can compare it with waiting. Call (502) 528-7273 or Get My Cash Offer.
Want to Compare a Direct Sale With Your Other Options?
Ask Roger to review the property and explain the written direct-sale option. Mortgage Forfeiture charges no company fee or agent commission; title, lien, tax, and payoff items still appear on the settlement statement.
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