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 | Remodeling

Jan 15, 2026

Remodeling Market Sentiment Strengthens in Fourth Quarter of 2025

The National Association of Home Builders (NAHB) released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the fourth quarter, posting a reading of 64, up four points compared to the previous quarter.

Sustainability and Green Building | Education

Jan 14, 2026

Upcoming NAHB Webinar Will Highlight Updates to NGBS

A new edition of the National Green Building Standard (NGBS) will be coming out soon. NAHB is hosting a webinar on Wednesday, Jan. 28, at 2 p.m. EST for members to learn more about the update.

View all

Latest Economic News

Economics

Jan 14, 2026

Building Material Price Growth Remains Elevated in November

Residential building material prices continued to experience elevated growth, according to the latest Producer Price Index release from the Bureau of Labor Statistics. Price growth has been above 3.0% since June this year, despite continued weakness in the new residential construction market.

Economics

Jan 13, 2026

New Home Sales Rise Year-Over-Year as Prices Stabilize

The new home sector has played an increasingly important role in meeting housing demand as resale inventory remains constrained in many regions. The latest data released today (and delayed because of the government shutdown in fall of 2025) indicate that new single-family home sales continue to reflect a stabilizing market after a period of heightened volatility.

Economics

Jan 13, 2026

Inflation Steady in December

Inflation held steady in December, matching November’s reading, according to the Bureau of Labor Statistics (BLS) latest report. This December report was the first report to include a month-to-month figure since the government shutdown.