State Legislation Expands
Foreign ownership of real estate is becoming a more significant state policy issue as lawmakers across the country consider new restrictions on who can acquire, lease or hold interests in U.S. property. More than 30 states already have some existing combination of ownership restrictions, disclosure requirements or related compliance obligations affecting foreign ownership of real estate, but this is regularly being expanded upon.
Based on the latest FOCUS legislative tracking, 30 states and the federal government have introduced 165 bills addressing foreign ownership of real estate during the most recent legislative sessions, with 18 measures being enacted across 12 states. The trend is creating a more complex compliance landscape for real estate investors, developers, lenders and other transaction participants.
The enacted measures span a range of approaches, from restrictions involving agricultural land and property near sensitive facilities to broader limitations affecting foreign adversaries or specified foreign-connected entities.
- States Enacting Measures: Arizona, Indiana, Iowa, Kansas, Louisiana, Mississippi, Nebraska, New Hampshire, North Carolina, Oklahoma, South Dakota and Tennessee enacted measures addressing foreign ownership or related real estate restrictions.
- National Security Focus: Several laws target property connected to countries or entities identified as foreign adversaries, with provisions addressing military installations, critical infrastructure, communications equipment and other sensitive assets.
- Different Property Types: The measures do not follow a single model. Some focus on agricultural land, while others extend to residential, commercial, industrial or military-installation-adjacent property.
- Enforcement Varies: State approaches can include disclosure requirements, prohibitions, divestiture requirements, forfeiture provisions or enforcement authority for state officials.
For example, South Dakota enacted SB 60, which includes restrictions on ownership of land adjacent to military installations by foreign adversaries and prohibits foreign actors, while Indiana SB 256 prohibits foreign adversaries from acquiring or leasing any real property in the state, with certain restrictions.
State-Federal Context
State restrictions are developing alongside existing federal requirements. The federal CFIUS real estate regulations allow review of certain transactions involving foreign persons and real estate near specified military installations, ports and other sensitive locations. In 2024, The U.S. Department of Treasury expanded the list of military installations covered by the regulations.
Agricultural transactions also remain subject to federal reporting requirements under the Agricultural Foreign Investment Disclosure Act. In January 2026, the U.S. Department of Agriculture launched an online AFIDA reporting portal for foreign interests in U.S. agricultural land.
What to Watch
The continued introduction and enactment of state legislation means foreign ownership requirements should increasingly be monitored by parties in the real estate sector. Investors and transaction professionals may need to evaluate property location, applicable exemptions, filing obligation and potential divestiture or enforcement provisions. Several of the enacted bills have been subject to legal challenges, facing questions of their constitutionality and potential preemption of federal laws.
FOCUS will continue to monitor developments on foreign ownership of real estate across the country.
by Elsa Nygard 9/8/2026
