Home-ownership Effects of Eminent Domain Legislation Following The Kelo Supreme Court Ruling : The 2005 United States Supreme Court case of Kelo v. City of New London cemented a very broad definition of the meaning of “Public Use” for use of eminent domain within the United States. The public backlash from the court case led to forty-five states passing some form of restriction on this broad definition of public use. The protections provided by these laws theoretically change the overall home-ownership cost for families and could effect the rent or buy decision. Using American Community Survey Data I have analyzed whether this is the case. Overall there seems to be little to no effect of these laws on an individuals home-ownership choice. This is likely caused through one of two mechanisms. First, the overall change in home-ownership cost is negligible to the overall cost of owning a home. Second, the risk born by the homeowner without eminent domain protections may be counteracted by the increase in home value by the ability of a municipality to remove blighted properties that may subtract from its value.
Targeting of Eminent Domain a Case Study of Florida: Florida provides a unique case study of a substantial legal change in what should be a binding condition. Pre-Kelo ruling, Florida counties were some of the most active users of eminent domain. Following the legislation the barrier to performing an eminent domain taking increased substantially. This change in the law allows me to observe the differential effects of eminent domain before and after the law and could help indicate if there is evidence of eminent domain abuses against the poor or minorities.