As the Texas real estate market explodes, the city of Dallas imposes new restrictions on real estate investors.
The proposed legislation comes amid alleged “exploitation” of home sales by REITs and other single-family home investors, according to Spectrum News 1.
The rapid rise in home prices in Texas has had a huge impact on home buyers. Although demand has not yet peaked, many home buyers are being pushed out of the market by investors.
According to Fox 4, median home prices in North Texas jumped 22% year over year in March. The dwindling supply also wreaked havoc on the regional market. North Texas had just 767 new market listings in March, down 93% from March 2021.
“Are we working on a broader policy regarding the scourge of investment buyers? Councilwoman Jaynie Schultz said at a recent council meeting, “It’s across the country that individuals aren’t buying homes anymore, but REITs are.”
“They should completely cut off foreign investors,” one Reddit user told Spectrum. “In this case, alien means anyone who is not registered in Texas. Global investors as well as Wall Street investors would not be able to sink local economies.
Others are a bit hesitant about legislation solving the problem. Laws like this could “simply prevent small landlords from buying investment properties, while only acting as a speed bump for the megacorps that are actually causing house prices to skyrocket,” another user told the information station.
The legislation, however, is not new. Earlier this month, Prime Minister Justin Trudeau’s government imposed a two-year ban on foreign investors buying homes in Canada in a bid to calm a boiling housing market.
Dallas Housing Director David Noguera cited the Canadian policy as a solution to similar housing problems in North Texas. “Canada limits the number of foreign investors who can enter your market and buy your property,” he said.
[Spectrum News 1] -Maddy Sperling