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

Leading Suppliers Council

Nov 18, 2025

Storm-Ready Style: What to Know About Impact-Rated Doors in Coastal and Tornado-Prone Areas

Rising demand for impact-rated doors in storm-prone areas means customers increasingly expect protection without compromise — doors that meet stringent codes while enhancing style, comfort, and long-term value.

Economics

Nov 18, 2025

Builder Sentiment Relatively Flat in November as Market Headwinds Persist

Builder confidence in the market for newly built single-family homes rose one point to 38 in November, according to the NAHB/Wells Fargo Housing Market Index (HMI) released today.

View all

Latest Economic News

Economics

Nov 18, 2025

Location, Location, Location: How Place and Neighborhood Shape Home Values

The value of a single-family home depends not only on its physical features but also on its location and neighborhood context.

Economics

Nov 18, 2025

Builder Sentiment Relatively Flat in November as Market Headwinds Persist

Market uncertainty exacerbated by the government shutdown along with economic uncertainty stemming from tariffs and rising construction costs kept builder confidence firmly in negative territory in November.

Economics

Nov 17, 2025

August Private Residential Construction Spending Edges Higher

Private residential construction spending inched up 0.8% in August, continuing steady growth since June 2025. This modest increase was primarily driven by more spending on multifamily construction and home improvements.