Which of the following is a common use of the power of eminent domain?

The power of eminent domain allows government entities to take private property for public use, provided that just compensation is given to the property owner. A common use of this power is indeed the buying out of homes in an area, particularly when the government needs to acquire land for projects such as highways, public transportation infrastructure, urban development, or other public facilities.

In situations where a community requires space for new roads, schools, or public works, acquiring residential properties through eminent domain ensures that the government can carry out these essential projects. This process often involves negotiations and assessments to determine the fair market value of the homes being acquired.

Other uses of eminent domain, such as establishing community parks or protecting wildlife habitats, can also occur, but these are not as direct as the process of buying out homes for more immediate or critical infrastructure needs. Regulating local businesses does not fall under eminent domain; instead, it relates to zoning and regulatory powers rather than property acquisition. Hence, the correct answer reflects a significant and common application of eminent domain in governmental planning and development.