The Economic Way of Thinking 13th Edition by David Prychitko, Peter Boettke, Paul Heyne

Exercise 3

A Santa Monica apartment owner decided to tear down his six-unit apartment building rather than operate under rent controls. The city refused him permission to tear down the building, however, claiming that its interest in preserving rental housing took precedence over his right to demolish his property. The California Supreme Court sustained Santa Monica's refusal to allow the demolition. Who owns the building? Sort out the actual, legal, and moral property rights in this case.