The ViewBans on foreign home ownership in US and Canada are lose-lose for immigrants and local economies

Various legislation in the US and Canada targeting foreign buyers – particularly those from China – will neither strengthen national security nor curb speculation

Instead, they risk driving away crucial business and investment while fuelling anti-Asian racism

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A “Sold” sign is seen in front of a home in Toronto, Canada, on March 11, 2021. Photo: Bloomberg

Published: 3:48pm, 27 Feb 2023

For Asian Americans living in Texas, the renewed escalation in tensions between Washington and Beijing could not come at a worse time.

Republican governor Greg Abbott – who last December banned the use of Chinese video platform TikTok on government-issued devices because of fears that consumer data could be accessed by China’s government – has pledged to sign a bill that would prevent citizens and companies from China, Iran, North Korea and Russia from buying real estate in Texas.

The draft legislation, which is sponsored by Republican state senator Lois Kolkhorst, is a response to concerns about recent purchases of land by Chinese companies, with several acquisitions made near US military bases. The bill, known as SB 147, would, as currently drafted, even bar permanent residents (or green card holders) from buying a home.

Other states, such as Florida, are also considering new legislation aimed at curbing foreign ownership of farmland or real estate. Never mind that Chinese investors hold less than 1 per cent of foreign-owned agricultural and non-agricultural land in the US and that they only accounted for 6 per cent of foreign purchases of residential property last year (down from 16 per cent in 2015), US politicians, particularly Republicans, are falling over themselves to sound hawkish on China.

The outcry among Asian Americans, especially in Texas, has been fierce. Although Kolkhorst said she would amend the bill to ensure the provisions do not apply to US citizens and lawful permanent residents, the proposal – which is likely to be debated in the spring – would still prohibit more recent immigrants from buying property.

The bill has already had a chilling effect, evoking racist and discriminatory laws in the past barring “non-desirable” immigrants from settling permanently in America and preventing them from owning land. It has also drawn criticism from Texas business and community leaders who worry about the state’s ability to attract top talent, particularly Austin, which has become a technology hub.