Exploring the Ethics of Private Property Buyouts

Learn more about the various impacts of buying out private property with the intent of furthering urban development.

3 minute read

March 8, 2023, 8:00 AM PST

By Devin Partida


Governments or businesses can buy out property for a variety of reasons. This practice exists in an ethical gray area, but buying out private property has the potential to benefit all parties involved.

Environmental Impacts 

How land is used affects the environment. When people use the land for agricultural purposes, it can have a negative ecological impact. The production of meat and produce can create harmful emissions, use up natural resources and destroy local ecosystems. If the private property used for agricultural production is bought out, there is potential to see a reduction in harmful environmental impacts.

Buyouts of private property can result in environmental and economic benefits for the surrounding community. The purchaser can repurpose bought-out property to benefit the environment or prevent damage from natural disasters. Houses prone to flooding can be bought out and turned into barriers against rising waters. The new owners of farmland can return the land to its original state. When someone buys out a property, an opportunity for positive ecological change arises.

How buying out affects communities

The United States tends to use single-use zoning for housing and development—a practice that restricts land to a particular type of use. Communities can be somewhat cut off when single-use zoning is used for housing development. Commercial and institutional buildings will be out of reach for many people living in single-use zones used for housing.

Sometimes, private property is unwanted. For many reasons, an owner of the structure or land might no longer want to keep ownership. Inherited property can create a financial burden when insurance, taxes, mortgages and other debts fall onto the new owner. Owners that don’t want to keep their property might allow it to be foreclosed or abandoned.

There are programs in place that allow communities or local governments to take ownership of foreclosed or unwanted land or buildings rather than leaving them to degrade. Some property is also undeveloped and vacant. Buying out private property for urban development can benefit the entire community in a variety of ways:

  • Surrounding market value will rise: Rebuilding or renovating the property after it is bought out will contribute to higher property values in the surrounding area.
  • Buyouts will address safety concerns: An empty or abandoned building poses safety and security risks. The new owner can tear down structures or fix safety issues once they buy the property out.
  • Redevelopment will offer new opportunities: Depending on zoning restrictions, the redeveloped property could become new housing, businesses, or a recreation facility for the community.

The acquisition of private property provides an opportunity for a community to turn the space into something new. While the private ownership of such land benefits the owner, acquiring it can benefit the broader community.

Economic impacts

During a buyout, the owner of the property can also benefit. For example, the United States government can acquire private property, but only if it compensates the owner for fair market value. Governments and businesses who want to acquire private property must pay market rates or higher, and this effectively limits the amount of property they can buy out. The owner of the property will also benefit financially from the process.

The process can be beneficial

The process of buying out private property can be a challenging process. However, there are situations where private property is more beneficial when someone buys it out. A buyout and redevelopment can create residential or commercial space, reduce environmental strain by keeping development in or near existing neighborhoods, and breathe new life into underutilized properties and communities.


Devin Partida

Devin Partida writes about current events, technology, and science. She is also the Editor-in-Chief of ReHack.com.

Single-family homes in a suburban neighborhood in Florida.

New Florida Law Curbs HOA Power

The legislation seeks to cut down on ‘absurd’ citations for low-level violations.

June 16, 2024 - The Guardian

Multistory apartment building under construction.

New Tennessee Law Allows No-Cost Incentives for Affordable Housing

Local governments in the Volunteer State can now offer developers incentives like increased density, lower parking requirements, and priority permitting for affordable housing projects.

June 10, 2024 - Nooga Today

Aerial view of intersection in New York City with yellow cabs and zebra crosswalks.

Planners’ Complicity in Excessive Traffic Deaths

Professor Wes Marshall’s provocatively-titled new book, "Killed by a Traffic Engineer," has stimulated fierce debates. Are his criticisms justified? Let’s examine the degree that traffic engineers contribute to avoidable traffic deaths.

June 13, 2024 - Todd Litman

Brick high-rise apartment buildings in New York City

Study: Housing Crisis is About Affordability, not Supply

New research shows that there is no overall shortage of housing units, but all U.S. metropolitan areas face a severe lack of affordable units for low-income renters.

June 18 - University of Kansas

Couple on one side of desk with banker on other side looking at paperwork.

Are Race-Based Lawsuits Affecting Community Lenders?

Shelterforce spoke with community lending leaders and experts about the current mood across the sector. What, if anything, are organizations doing to avoid becoming the next target of conservative activists?

June 18 - Shelterforce Magazine

Rendering of Glory Park in Lewisville, Texas.

New Park Promotes Community and Connectivity in Lewisville, Texas

The city of Lewisville just celebrated the opening of Glory Park/Parque la Gloria, helping to improve park access and the quality of life for residents.

June 18 - Lewisville Leader

Write for Planetizen

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.