Texas has implemented Senate Bill 17, a law prohibiting many individuals and businesses from China, Iran, Russia, and North Korea from purchasing most types of real estate in the state. The legislation, which took effect recently, was introduced by Republican Senator Lois Kolkhorst and framed as a national security measure, despite a lack of evidence to support the claim.
The law allows limited exemptions for foreign nationals who have lawful status and reside in the US, such as those on valid work or student visas, enabling them to buy a primary residence. However, they are barred from purchasing additional properties, including commercial buildings, farmland, and rental homes. This has caused distress among Chinese nationals living in Texas, including Shutong Hao, a naturalised citizen who felt targeted by the policy.
Legal challenges have been mounted by the Chinese American Legal Defense Alliance (Calda), representing two Chinese nationals, Peng Wang and Qinlin Li, who argue the law is discriminatory and unconstitutional. They contend it restricts property ownership based on national origin and may conflict with federal authority over foreign investment. Veteran real estate agent Andrew Clark noted the law appears to contradict the Fair Housing Act.
The law has drawn comparisons to historical alien land laws from the late 19th and early 20th centuries, which barred Asian immigrants from owning land. Justin Sadowsky of Calda sees echoes of those racist policies in the new legislation. Critics, including the ACLU, argue Texas already has tools to address national security without resorting to discriminatory measures.
