By FOCUS, A Leonine Business
Foreign investment in U.S. real estate has reached over $1.2 trillion since 2009, prompting the attention of legislative interest across the country. In 2025 alone, 149 bills relating to foreign buyer restrictions were introduced in 36 states and in the U.S. Congress. To date, 21 states have enacted foreign buyer restriction laws.
One example of such restrictions can be found in Arkansas. HB 1680/Act 811, signed into law in April, prohibits any foreign-controlled business from leasing any interest in land. This type of legislation is largely shaped by security considerations, particularly regarding foreign control over critical infrastructure or military installations. New Jersey AB 535, for example, has been introduced and would prohibit foreign adversary companies from owning or managing systems like communication networks, gas pipelines or water distribution infrastructure.
Another concern spurring this type of legislation is foreign control of agricultural land. Foreign ownership of agricultural land has increased by almost 50 percent since 2017. Bills like Kentucky’s HB 315/Chapter 84 would block non-resident aliens and foreign entities from acquiring any agricultural land in the state. Tennessee also enacted new reporting requirements through HB 219/Chapter 337, mandating that foreign buyers file property purchase reports with the state’s Department of Agriculture, mirroring federal filing requirements.
With states taking the lead in imposing restrictions, a fragmented patchwork of laws is emerging, raising compliance challenges for foreign investors and prompting federal lawmakers to consider a more unified approach. At the federal level, 19 bills have been introduced in 2025. Notably, U.S. HR 458 would bar foreign adversaries and state sponsors of terrorism from acquiring public or private real estate.
The evolving policy landscape on foreign real estate ownership highlights a broader trend of balancing economic openness with national security. As more states introduce and enact legislation, and federal efforts continue, this issue will remain a key area of focus for lawmakers and stakeholders alike. FOCUS will continue to monitor foreign real estate ownership at both the state and federal levels.
