U.S. Supreme Court Embraces Property Owner’s Right to Exclude
The U.S. Supreme Court today issued a Fifth Amendment “takings” decision that is a win for property owners. The Fifth Amendment provides that the government may not take private property unless it pays the owner just compensation.
In this case, a California regulation granted labor organizers a right to access a farmer’s property to solicit support for unionization. The regulation allowed the organizers access for up to three hours a day, 120 days per year. The farmer argued that allowing the organizers on their property was an unconstitutional “physical taking” of their property.
The majority of the Supreme Court agreed. Chief Justice John Roberts, joined by five other justices, explained that the a “central importance” of property ownership is the “right to exclude” others.
The lower court and the dissent took the view that the regulation did not cause a ”physical taking“ because it did not allow a permanent and continuous invasion (24 hours a day, 365 days per year) of the farmer’s property.
The Supreme Court majority tore apart this argument by explaining that it does not matter if the government only invades a person’s property for 364 days, instead of 365 days; the fact that the invasion is from time to time does not make it any less physical.
In its conclusion, the Supreme Court did recognize that not all government invasions of private property require compensation. It provided examples of making an arrest, requiring a landowner to provide access in exchange for a permit, or abating a nuisance on private property. None of these amount to a taking of private property.
Latest from NAHBNow
Jun 18, 2025
Podcast: Mid-Year Update on Economic Indicators and Advocacy PrioritiesOn the latest episode of NAHB’s podcast, Housing Developments, COO Paul Lopez welcomes NAHB Chief Economist Dr. Robert Dietz and Chief Advocacy Officer Ken Wingert for a mid-year check in on key economic indicators and NAHB policy priorities driving home building for the rest of 2025.
Jun 18, 2025
Sharp Drop in Multifamily Production Brings Overall Housing Starts DownOverall housing starts decreased 9.8% in May to a seasonally adjusted annual rate of 1.26 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Latest Economic News
Jun 18, 2025
Sharp Drop in Multifamily Production Brings Overall Housing Starts DownA sharp decline in multifamily production pushed overall housing starts down in May, while single-family output was essentially flat due to economic and tariff uncertainty along with elevated interest rates.
Jun 17, 2025
Builder Sentiment at Third Lowest Reading Since 2012In a further sign of declining builder sentiment, the use of price incentives increased sharply in June as the housing market continues to soften.
Jun 16, 2025
Permit Activity Weakens in April 2025Housing permits continued a downhill trend for the fourth month in a row, pointing to a broader residential construction slowdown for 2025. Over the first four months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 320,259.