U.S. Supreme Court Embraces Property Owner’s Right to Exclude

Legal
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics | Membership

Dec 19, 2025

2025 Census Survey Reminder: Help Us Advocate for Home Building

Members should have received an important reminder this week from NAHB to complete our 2025 Builder and Associate Member Census. Please take a few minutes to participate to help us develop education, advocacy and networking opportunities needed to help your business grow.

Member Benefits

Dec 19, 2025

Ford Announces Big Savings for NAHB Members on 2026 Model Year Vehicles

As a flagship partner of the NAHB Member Savings Program, Ford Pro has announced significant savings on eligible 2026 model year vehicles — up to $5,500 off. The lineup includes popular options such as Broncos, F-150s, Super Duty pickups, and Transit vans.

View all

Latest Economic News

Economics

Dec 19, 2025

Existing Home Sales Edge Higher in November

Existing home sales rose for the third consecutive month in November as lower mortgage rates continued to boost home sales, according to the National Association of Realtors (NAR). However, the increase remained modest as mortgage rates still stayed above 6% while down from recent highs. The weakening job market also weighed on buyer activity.

Economics

Dec 18, 2025

Lumber Capacity Lower Midway Through 2025

Sawmill production has remained essentially flat over the past two years, according to the Federal Reserve G.17 Industrial Production report. This most recent data release contained an annual revision, which resulted in higher estimates for both production and capacity in U.S. sawmills.

Economics

Dec 18, 2025

Inflation Slows in November (with a Caveat)

Inflation unexpectedly eased in November, according to the Bureau of Labor Statistics (BLS) latest report. This data release was originally scheduled for December 10 but was delayed due to the recent government shutdown.