In a controversial move with far-reaching implications for global real estate investments in the USA, the Texas House of Representatives has advanced a bill that would ban citizens from China, Iran, North Korea, and Russia from owning real estate within the state. The legislation, which previously passed the Texas Senate, now includes new amendments giving the state governor broad powers to add other countries to the banned list—without requiring further legislative approval.

This development is stirring heated debate in real estate, legal, and political circles, particularly amid ongoing scrutiny over foreign investments in sensitive markets such as Texas, Florida, and other states across the U.S.

Legislative Breakdown: What the Bill Proposes

The bill, sponsored by Rep. Cole Hefner, a Republican lawmaker, aims to prevent property ownership by citizens of countries the U.S. has categorized as hostile. Advocates argue it’s a necessary step for protecting the state’s economic security, infrastructure, and supply chain from foreign influence.

“We must not allow oppressive regimes who actively seek to do us harm to seize control and dictate their terms over our economy, supply chain and our daily lives,” said Hefner during deliberations on the House floor.

The legislation allows for certain exceptions. Non-citizens from these countries who are legally residing in the U.S. would be permitted to own property under the proposed law.

New Amendment: Governor’s Expanded Powers

An important amendment added by the House grants the Texas Governor authority to unilaterally add additional countries to the banned list without going through the usual legislative process. This provision raises constitutional and governance concerns, with critics warning it sets a dangerous precedent for unchecked executive power in matters affecting real estate ownership and international investment.

This part of the bill has particular relevance for international investors watching real estate investments in the USA, Canada, the UK, and Dubai, as it could signify a trend of increasing protectionist real estate policy at the state level in the U.S.

Critics Slam Bill as Racist and Dangerous

The bill has drawn sharp criticism, especially from Democratic lawmakers, civil rights groups, and immigrant communities. Rep. Gene Wu, a Democrat who immigrated from China as a child, warned that the measure may encourage racial profiling and hate crimes against Asian Americans.

“Nobody around here knows the difference between Chinese and Taiwanese or Japanese or Vietnamese,” Wu argued. “When the attacks come, when the hate crimes start, it will be against Asians – everybody with [an] Asian face.”

Opponents argue the bill does little to address actual security threats but instead fosters xenophobia and unfairly targets lawful immigrants and potential investors. Many within the proptech and real estate sectors have also raised alarms about the chilling effect such a policy could have on foreign direct investment, which has long been a key driver in real estate developments across cities like Houston, Dallas, and Austin.

National Context: A Wider Trend?

Texas is not alone in this legislative direction. The proposed ban follows a 2023 law in Florida that similarly restricts land ownership by nationals from certain countries. However, the Florida law is currently on hold due to a federal appeals court challenge, highlighting the legal complexities surrounding such property bans.

If enacted, the Texas law could embolden other U.S. states to implement similar regulations, potentially impacting international buyers considering real estate investments in Nigeria, Dubai, Canada, or the UK, who may also be evaluating opportunities in the American market.

Key Takeaways

• The Texas House has passed an amended bill to ban Chinese, Iranian, Russian, and North Korean citizens from buying property in the state.

• A new amendment gives the Governor power to expand the list of banned countries without legislative input.

• Critics call the bill racist and xenophobic, warning it could incite anti-Asian hate and damage foreign investment confidence.

• Supporters argue the law is necessary to protect Texas’ economic and national security.

• The bill follows similar actions in Florida, though that law is currently stalled in court.

• If enacted, this could signal a broader trend in U.S. real estate legislation, with ripple effects for global property investors monitoring real estate investments in the USA and beyond.