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
Jul 21, 2026
Which Exterior Material Is Used Most in Single-Family Homes?Holding just over a quarter share of homes, vinyl siding was the most used principle exterior wall material for homes started in 2025, surpassing stucco for the second time since 2018.
Jul 20, 2026
Forecasting Trends That Will Reshape the Remodeling IndustryDuring an upcoming webinar, NAHB Economist Eric Lynch, along with other economic forecasters and remodeling experts, will provide a mid-year remodeling update and discuss their near-term forecasts for the industry.
Latest Economic News
Jul 21, 2026
Shrinking Lots: Trend Levels Off as Smaller Lots Remain the NormThe long-term shift toward building single-family detached homes on smaller lots appears to have stabilized. According to the latest Survey of Construction (SOC), the share of new homes built on smaller lots remained near record highs in 2025, following more than a decade of steadily shrinking lot sizes.
Jul 20, 2026
Exterior Material Trends in Single-Family HomesVinyl siding was the most used principle exterior wall material for homes started construction in 2025. This material held just over a quarter share of homes, surpassing stucco for the second time since 2018. The declining share for stucco reflected the slowdown for home building in parts of the Sun Belt.
Jul 17, 2026
Multifamily Gains Lift Overall Starts Despite Single-Family DeclineStrong multifamily growth pushed overall housing starts higher in June, while single-family production remained sluggish as elevated mortgage rates, rising construction costs and persistent labor shortages continued to weigh on the market.