Eminent Domain Restrictions Don't Hurt Growth

A recent report has found that restricting the government's eminent domain powers does not harm economic growth.

1 minute read

January 30, 2008, 11:00 AM PST

By Nate Berg


"Since the Supreme Court sanctified eminent domain on behalf of private developers in the dreadful 5-4 Kelo ruling in 2005, 42 states have passed some restriction on the practice. Some reforms have been far-reaching, as in Florida, which barred public entities that seized property from transferring it to private hands for 10 years after the seizure. Other reforms are more modest, changing the definition of 'blight' or throwing up other obstacles to overeager planners."

"So the Institute for Justice, which spearheaded the original campaign to save Suzette Kelo's home, decided to crunch some numbers. First, the report assigns each state to one of three categories according to the level of reform implemented after Kelo: 'strong,' 'moderate' or 'none.' Then it compares the data for construction jobs, building permits and property-tax revenue before and after the effective dates of the reforms for each state. The verdict: So far, there has been no discernable hit to economic activity from the restriction of eminent domain, even in those states with the broadest reforms."

Wednesday, January 30, 2008 in The Wall Street Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 14, 2025 - Diana Ionescu

Front of Walmart store with sign.

Walmart Announces Nationwide EV Charging Network

The company plans to install electric car chargers at most of its stores by 2030.

May 7, 2025 - Inc.

Public Market sign over Pike Place Market in Seattle, Washington with pop-up booths on street.

Seattle’s Pike Place Market Leans Into Pedestrian Infrastructure

After decades of debate, the market is testing a car ban in one of its busiest areas and adding walking links to the surrounding neighborhood.

May 15 - Cascade PBS

Yellow and silver light rain train in downtown Long Beach, California.

The World’s Longest Light Rail Line is in… Los Angeles?

In a city not known for its public transit, the 48.5-mile A Line is the longest of its kind on the planet.

May 15 - Secret Los Angeles

Man reaching for young girl sliding down playground slide.

Quantifying Social Infrastructure

New developments have clear rules for ensuring surrounding roads, water, and sewers can handle new users. Why not do the same for community amenities?

May 15 - Happy Cities