A Landmark Property Rights Case

In early February, a Florida judge upheld an a provision in the Destin city charter that limits buildings to a height of six stories. The city had been sued by the Destin Fishing Fleet Inc. which claimed that the value of its property value had been diminished. The city called the ruling “a landmark private property rights case that will shape the Destin Harbor for years to come.”

It isn’t clear whether the city believes that this is a victory for property rights or an affirmation of its ability to violate those rights. However, given the fact that many property owners claim that land-use regulations protect property rights, it is likely the former. This view is founded on the false belief that protecting property values is an issue of property rights.

The right to property means the freedom to produce, trade, and use material values, i.e., property. Zoning and other land-use regulations, like the Destin charter provision, restrict and limit how land may be used. In short, zoning and other land-use regulations violate property rights.

Many homeowners believe that zoning is necessary to prevent commercial and industrial establishments from setting up shop in their neighborhood. They believe that such businesses diminish property values, and so, they support using the coercive fist of government to dictate how land may and may not be used. They support restricting the freedom of landowners to use their property as they deem best.

In the Destin case, the plaintiff wanted to build a sixteen-story mixed-use building. The charter amendment, which was approved by voters, prevented the business from using its property as it desired. That a majority of voters desire such policies does not make them moral or just.

It isn’t certain whether this is truly a landmark property rights case. But it is certain to set a dangerous precedent in Florida.