'pet-restricted' originates from Modern English as a compound of 'pet' and 'restricted'. 'pet' (originally meaning a favored companion or animal) entered English in the 16th century, while 'restricted' comes from Latin 'restringere' via past participle forms meaning 'bound' or 'limited'.

'pet-restricted' was formed by combining the noun 'pet' with the past-participle adjective 'restricted' (from 'restrict') to describe policies that limit or prohibit pets; the usage became common in property and housing contexts in the 20th century.

Initially the components conveyed 'pet' (a favored animal) and 'restricted' (limited or bound); over time the compound came to specifically denote a policy or condition that disallows pets.