People buying a home are taking a tremendous risk, purchasing something that costs more than they will make in the next five years. In order to take that risk, they have to be confident that nothing will happen to that home that will diminish the value. This expanded power of government introduces another level of uncertainty into home ownership. If I spend a Half Million dollars on a house, and the town can sieze the property next door in order to build a strip mall, where does that leave me?
People are going to be less likely to take the risk. Demand will fall, and prices along with them. The strongest leg of the economy has just been removed by judicial fiat.
Living next to a strip mall under this decision