A major U.S. state is moving forward with a sweeping ban on land and property purchases by certain foreign nationals and entities.
Texas Governor Greg Abbott recently signed Senate Bill 17 into law, prohibiting individuals and organizations from China, Russia, Iran and North Korea from acquiring real property in the Lone Star State. These countries are identified as threats in the 2025 Annual Threat Assessment of the U.S. Intelligence Community.
The bill’s definition of “real property” is broad, covering residential properties, commercial and industrial properties, agricultural land, mines, minerals, groundwater and water rights and standing timber.
It’s a serious measure: Under the law, violations are classified as state jail felonies and carry civil penalties of $250,000 or 50% of the property’s market value — whichever is greater. And the bill is set to take effect on Sept. 1, 2025.
“Gov. Abbott signed our bill to protect Texas from the influence of hostile foreign nations,” said State Rep. Cole Hefner, a co-author of the legislation in a statement. “This is about defending Texas — our sovereignty, our security, and our way of life.”
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But critics warn the bill could lead to discrimination.
“People may be turned away from business opportunities even if they are not falling into this category, because most people don’t know who’s Chinese and who’s Japanese and who’s anything or what their immigration status (is),” said State Rep. Gene Wu.
“They’re going to see [an] Asian face, and they’re going to say, ‘I’m not sure if I can legally sell to you. I might get in trouble. I’m just going to cut my losses and say we’re not going to sell to Asian people of any kind.’”
According to the Congressional Research Service, “at least 22 states enacted legislation regulating foreign ownership of real property” between January 2023 and July 2024.
A coveted asset
While measures like Texas’s new law highlight the national security concerns around foreign land ownership, they also underscore just how valuable U.S. real estate remains — and why so many investors continue to see it as a cornerstone of wealth building.
In 2022, when illustrating what a productive asset looks like, legendary investor Warren Buffett famously said that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check.”
Why? Because no matter what’s happening in the broader economy, people still need a place to live and apartments can consistently produce rent money.
Real estate also serves as a natural hedge against inflation. When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts with inflation.
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Over the past five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has surged more than 50%.
And while high home prices and elevated mortgage rates mean buying a home can be a challenge, investing in real estate has become easier than ever thanks to crowdfunding platforms like Arrived.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving positive rental income distributions from your investment.
Another option is Homeshares, which gives accredited investors access to the $35 trillion U.S. home equity market — a space that’s historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
