A divided Supreme Court ruled Thursday that local governments may seize people’s homes and businesses against their will for private development, in a decision anxiously awaited in communities where economic growth often is at war with individual property rights.

The 5-4 ruling, assailed by dissenting Justice Sanday Day O’Connor as handing “disproportionate influence and power” to the well-heeled in America, was a defeat for some Connecticut residents whose homes are slated for destruction to make room for an office complex. They had argued that cities have no right to take their land except for projects with a clear public use, such as roads or schools, or to revitalize blighted areas.