air rights

Definition

The property rights to use the vertical space above a parcel of land, which can be sold separately from the land itself. In dense cities, this lets you literally monetize thin air by selling the right to build above your property.

Example Usage

The church sold its air rights to a developer for $12 million, allowing a luxury tower to rise above while the congregation kept its historic building.

Origin

Legal concept emerging from early 20th century urban development, formalized after the 1922 Supreme Court case Causby v. United States

Fun Fact

Grand Central Terminal in New York preserved its historic facade by selling air rights worth hundreds of millions, enabling skyscrapers like One Vanderbilt to rise nearby.

Source: Urban planning and zoning law documentation

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