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

Remodeling | Business Management

Jul 23, 2026

Do You Have an Exit Strategy for Your Remodeling Business?

A survey that Pro Remodeler conducted this spring about remodeling business owners’ plans for when they eventually leave their companies reveals a wide gap between when owners plan to retire and how prepared they actually are to do so.

Economics

Jul 22, 2026

Inflation Risks Rise from Renewed Iran War

Renewed hostilities in the Middle East and the end of the ceasefire are placing upward pressure on oil prices, which have risen above $80 a barrel. Rising energy costs are expected to push July inflation higher.

View all

Latest Economic News

Economics

Jul 21, 2026

Shrinking Lots: Trend Levels Off as Smaller Lots Remain the Norm

The 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.

Economics

Jul 20, 2026

Exterior Material Trends in Single-Family Homes

Vinyl 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.

Economics

Jul 17, 2026

Multifamily Gains Lift Overall Starts Despite Single-Family Decline

Strong 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.