Dallas considers restrictions on real estate investors

The Texas city may follow Canada in taking measures to stop investors from buying up dwindling housing supply

Texas /
May.May 02, 2022 11:00 AM
From left: Councilwoman Jaynie Schultz and Dallas Director of Housing David Noguera (Dallas City Hall, LinkedIn/David Noguera, iStock)

From left: Councilwoman Jaynie Schultz and Dallas Director of Housing David Noguera (Dallas City Hall, LinkedIn/David Noguera, iStock)

As the Texas real estate market explodes, the city of Dallas is weighing new restrictions on real estate investors.

The proposed legislation comes in the midst of alleged “exploitation” of home sales by REITs and other single family-home investors, according to Spectrum News 1.

Texas’ fast-climbing home prices have heavily impacted home buyers. Though demand has yet to reach a ceiling, many home buyers are being priced out of the market by investors.

Median home prices in North Texas jumped 22 percent year-over-year in March, according to Fox 4. Dwindling supply has also wreaked havoc on the regional market. North Texas only had 767 new listings hit the market in March — down 93 percent from March 2021.

“Are we working on a bigger policy regarding the scourge of investment buyers?” said Councilwoman Jaynie Schultz at a recent council meeting, “it is across the country, where individuals are no longer buying homes, but REITs are.”

“They should completely cut off foreign investors,” one Reddit user told Spectrum. “In this case, foreign means anybody that isn’t registered in Texas. Global investors as well as Wall Street investors wouldn’t be able to plunge local economies.”

Others are a little hesitant that the legislation would resolve the issue. Laws such as this one could “just restrict small-time landlords from buying investment properties, while only acting as a speedbump to the megacorps that are actually causing the runaway housing prices,” another user told the news station.

The legislation is by no means novel, however. Earlier this month, Prime Minister Justin Trudeau’s government imposed a ban on foreign investors from buying homes in Canada for two years in a bid to cool off a hot housing market.

Dallas Director of Housing David Noguera cited this Canadian policy as a solution for North Texas’ similar real estate problems. “Canada restricts how many foreign investors can come into your market and buy up your real estate,” he said.

[Spectrum News 1] — Maddy Sperling





    Related Articles

    arrow_forward_ios
    Logistics Real Estate's Steve Layton with proposal for Cedars Commerce Center (LinkedIn, CBRE LBA Logistics)
    Blackstone’s LBA logistics giving former Sears warehouse $35M upgrade
    Blackstone’s LBA logistics giving former Sears warehouse $35M upgrade
    Hoque Global ceo Mike Hoque, Goldman Sachs’ CEO David M. Solomon and HKS Architects president and ceo Dan Noble with the Newpark Dallas development, Goldman Sachs’ tower and East Quarter high-rise and multifamily residences (Hoque Global, LinkedIn, HKS Architects, New Park Dallas, Wikipedia, East Park Dallas, iStock)
    Four upcoming projects set to change change Dallas’ skyline development
    Four upcoming projects set to change change Dallas’ skyline development
    Hoque Global's Michael Hoque and Newpark skyscraper (Hoque Global / Lanoha Real Estate Company)
    Dallas to provide up to $96 million in incentives for downtown skyscraper
    Dallas to provide up to $96 million in incentives for downtown skyscraper
    Westmount's Cliff Booth with 1615 John West Road, Dallas, TX (Google Maps, LinkedIn)
    Roaches, bugs don’t deter Texas landlords as rents surge
    Roaches, bugs don’t deter Texas landlords as rents surge
    Michael Dell (Getty, iStock)
    Here’s where Michael Dell hangs up his many hats
    Here’s where Michael Dell hangs up his many hats
    Dallas mayor Eric Johnson with renderings of the Four Seasons hotel development in Dallas (City of Dallas, Pelli Clarke Pelli)
    Dallas City Council approves $750 million hotel and condo project for downtown Dallas
    Dallas City Council approves $750 million hotel and condo project for downtown Dallas
    Goldman Sachs’ David Solomon (Getty, iStock)
    Dallas sees Goldman office tower as downtown catalyst
    Dallas sees Goldman office tower as downtown catalyst
    Goldman Sachs CEO David M. Solomon (U.S. Secretary of Defense, CC BY 2.0/via Wikimedia Commons, Andreas Praefcke, CC BY 3.0/via Wikimedia Commons, Goldman Sachs, iStock/Illustration by Steven Dilakian for The Real Deal)
    Dallas OKs tax breaks for Goldman Sachs office tower
    Dallas OKs tax breaks for Goldman Sachs office tower
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...