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

Membership | Leadership Development | Leadership Meetings

Mar 11, 2026

Emerging Leader Grant Opens the Door to National Leadership for More Members

Is a member leader at your HBA planning to attend their first NAHB leadership meeting this spring? Encourage them to apply for the NAHB Emerging Leader Grant. Applications are due April 20.

Advocacy | Legal

Mar 11, 2026

Podcast: Massive Win in Battle Over Federal Energy Code Mandates

On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez welcome VP of Legal Advocacy Tom Ward to discuss the impact of the recent court decision on the Department of Housing and Urban Development’s (HUD) and the Department of Agriculture’s (USDA) final determination to impose the 2021 International Energy Conservation Code (IECC) and the 2019 ASHRAE 90.1 standard on certain single-family and multifamily housing programs.

View all

Latest Economic News

Economics

Mar 11, 2026

Inflation Steady Before War

After months of downward trend, inflation held steady at an eight-month low in February. This report does not reflect the recent surge in oil prices due to Iran conflict beginning February 28. Higher oil prices will likely translate into higher gasoline costs and impact other sectors associated with transportation including airline tickets.

Economics

Mar 11, 2026

Single-Family Permits End 2025 on a Soft Note

Single-family permitting softened over the course of 2025 and finished the year weaker than the prior year. After showing some resilience in 2024, permitting activity gradually lost momentum as elevated mortgage rates and ongoing affordability constraints weighed on buyer demand.

Economics

Mar 10, 2026

Existing Home Sales Rose in February

Following the sharp decline last month, existing home sales bounced back in February as housing affordability improved. Lower mortgage rates and moderating home price growth helped pull buyers back to the market. However, tight inventory will likely continue to push home prices higher if demand outpaces supply growth.