Foreign entities are acquiring U.S. real estate while American citizens struggle to buy homes, this is according to Representative Pat Harrigan from North Carolina. He spoke to Fox News Digital about new legislation aimed at tackling this issue.
Harrigan’s proposed legislation, known as the Real Estate Interrelations Act, seeks to impose a 50% tax on real estate purchases by foreigners and government-affiliated organizations. This would apply if these foreign nations maintain restrictions on American property purchases.
The bill also mandates that all foreign buyers declare their purchases to the IRS. Additionally, the Secretary of State would be required to report annually on restrictions preventing U.S. citizens from owning property in various countries.
Harrigan asserted, “American families face challenges in purchasing homes, yet foreign adversaries are buying up our lands with cash – farmland, homes near military bases, you name it.” He continued, “If Americans cannot buy land in your country, then you shouldn’t be able to purchase our land.”
Interestingly, many countries have rules or outright bans against foreign individuals buying land. Nations like Switzerland, New Zealand, Denmark, and the Philippines enforce strict regulations in this regard. In places like China and Saudi Arabia, while foreign ownership of land is off-limits, investments in real estate are allowed.
There are concerns that foreign buyers are driving up housing prices in major urban areas, which can make it more difficult for locals to compete.
The proposed legislation emerges amidst a broader trend of laws being introduced to curb foreign purchases of U.S. farmland, especially near critical military installations.
According to USDA data, last year, China owned around 350,000 acres of farmland across 27 states. Moreover, by 2022, foreign individuals and organizations controlled 43.4 million acres of U.S. farmland. Canada’s holdings were particularly notable, as it owned 12.8 million acres, surpassing the combined land area of New Hampshire and Vermont.
