Florida has emerged as the epicenter of a nationwide movement to restrict foreign property ownership, particularly targeting Chinese citizens. After Governor Ron DeSantis signed sweeping legislation in 2023 that banned most Chinese nationals from purchasing homes and land in the state, a federal appeals court recently upheld the controversial law, potentially paving the way for similar restrictions in dozens of other states across America.
The Law and Its Provisions
On May 8, 2023, Governor DeSantis signed Florida Senate Bill 264 into law, which took effect on July 1, 2023. The legislation specifically restricts individuals who are “domiciled” in the People’s Republic of China and who are not U.S. citizens or lawful permanent residents, green card holders, from purchasing or owning most property in Florida.
The law includes limited exceptions. Chinese nationals may purchase one residential property up to two acres, provided it is not located within five miles of a military base and they possess non-tourist visas. However, the term “domiciled” remains ambiguously defined in the law’s language, creating confusion about exactly who falls under the restrictions.
The legislation also extends beyond Chinese citizens, restricting property purchases by citizens of Cuba, Venezuela, Syria, Iran, Russia, and North Korea. However, Chinese nationals face the most stringent limitations, reflecting what DeSantis framed as necessary protection against influence from the Chinese Communist Party.
Penalties for violations are severe. Sellers who knowingly violate the restrictions face up to one year in prison and $1,000 in fines. Chinese nationals who illegally purchase property in Florida face even higher penalties. Additionally, Chinese nationals who already owned property in Florida before the law’s enactment were required to register with the state’s Commerce Department, with failure to register by 2024 triggering potential fines of up to $1,000 per day.
The Court Battle
The law immediately faced legal challenges. In May 2023, a group of Chinese citizens living in Florida, backed by the American Civil Liberties Union and other civil rights groups, filed a lawsuit in federal court in Tallahassee. The plaintiffs contended that the restrictions violated constitutional equal-protection rights, breached the federal Fair Housing Act, and conflicted with federal law governing foreign investment.
The Justice Department sided with the challengers in a filing, arguing the measure was unconstitutional. Initially, a federal district judge ruled against the challenge in August 2023. However, in February 2024, a unanimous panel of the U.S. Court of Appeals for the Eleventh Circuit granted preliminary injunctive relief to two of the four plaintiffs, suggesting the law might violate federal law.
The legal momentum shifted dramatically on November 4, 2025, when the same Eleventh Circuit issued a 2-1 ruling that cleared the way for Florida to enforce the law. The appeals court rejected claims that the legislation violates federal law or discriminates against Asians. Crucially, the court determined that the four Chinese citizens represented by the ACLU lacked legal standing to sue because the law applies only to people “domiciled” in China, and the plaintiffs had lived in Florida for years.
Florida Attorney General James Uthmeier celebrated the victory on social media, posting: “Today we won big at the US Court of Appeals for the 11th Circuit, defending our law preventing ownership of Florida land by the Chinese Communist Party.”
Real-World Impact on Buyers and Sellers
The law’s effects have rippled through Florida’s real estate market, creating hardship for Chinese nationals living and working in the state while disrupting business for real estate professionals.
Jin Bian, a 31-year-old software engineer from Nanjing who has lived in the United States for 12 years on an H-1B work visa, discovered the law’s impact firsthand. When his employer implemented a return-to-office policy, Bian decided to purchase a house closer to his Tampa office to reduce his one-hour commute. He was shocked to learn the purchase could result in prison time. “That was really shocking to me. It’s just purchasing property,” Bian said. “Once I learned that, I didn’t even bother to look anymore.”
Susan Li, a 47-year-old small business owner in Orlando who holds a green card, said she “really felt the discrimination” when she learned about the bill, despite being exempt from its restrictions. The psychological impact extended beyond those directly affected, creating an atmosphere of uncertainty and unwelcome for the broader Chinese American community.
Real estate agents across Florida reported losing business as families walked away from deals. The ambiguity in the law’s language, particularly around what constitutes being “domiciled” in China, introduced confusion and discrimination concerns. Some agents hesitated to work with Chinese clients, uncertain about liability exposure even when clients appeared to fall outside the law’s restrictions.
The registration requirement for existing Chinese property owners created additional chaos. Three months after the law took effect, the state’s Commerce Department still hadn’t established a clear registration process, leaving property owners uncertain how to comply while facing the threat of $1,000-per-day fines for non-compliance.
Market Data Reveals Shifting Investment Patterns
The law’s deterrent effect appears in national real estate data. In 2024, according to the National Association of Realtors, only 3 percent of Chinese buyers purchased properties in Florida, a dramatic underrepresentation given the state’s size and traditional appeal to international buyers.
By contrast, 36 percent of Chinese buyers preferred California, which has not enacted similar restrictions. Maryland and New York each attracted 9 percent of Chinese purchases, while Hawaii drew 5 percent. Even states like Georgia, Idaho, Louisiana, North Carolina, Washington, Arizona, and Delaware proved more popular than Florida for Chinese buyers, likely because Florida’s pending and enacted ban was already influencing investment decisions.
Despite Florida’s declining share, Chinese nationals still represented the biggest portion of foreign buyers in the United States overall at 15 percent in 2024, demonstrating substantial purchasing power that Florida is now effectively excluding from its market.
National Trend Toward Foreign Property Restrictions
Florida’s law represents the leading edge of a broader national movement. Since 2023, at least 241 bills restricting property ownership by foreign entities have been considered by 39 states. In 2024 alone, lawmakers in 32 states considered 151 bills restricting foreign property ownership, with 78 specifically targeting Chinese citizens.
Seven states beyond Florida have passed such legislation, including Idaho, Indiana, Iowa, South Dakota, and Utah, plus two bills in Nebraska. Indiana’s HB 1183, Nebraska’s LB 1301, and South Dakota’s HB 1231 specifically prohibit Chinese citizens from purchasing or owning some form of property.
The Eleventh Circuit’s November 2025 ruling upholding Florida’s law could accelerate this trend. These so-called “alien land laws” were once common in the United States but fell out of favor a century ago, tainted by their association with discriminatory legislation like the Chinese Exclusion Act of 1882. Their modern resurgence reflects renewed geopolitical tensions and national security concerns.
The National Security Rationale
Supporters of the restrictions frame them as essential national security measures. Governor DeSantis and Florida officials argue the law targets the influence of the Chinese Communist Party rather than Chinese individuals. A spokesperson for DeSantis stated: “Florida continues to take these threats to our state sovereignty seriously, and we will continue to take action where it’s necessary to protect Floridians.”
This rationale connects to broader concerns about Chinese government influence in the United States. The proximity restrictions, banning purchases within five miles of military installations, reflect fears about espionage or surveillance near sensitive facilities. Florida’s substantial military presence, including numerous bases and installations, makes these concerns particularly salient for state officials.
The legislation arrived amid a wave of restrictions on Chinese commercial activity across governmental levels. Lawmakers in both parties at city, state, and federal levels have targeted major Chinese tech companies, including TikTok, over data privacy and national security concerns. The property restrictions extend this suspicious scrutiny to real estate, an asset class traditionally viewed as benign foreign investment.
Critics Decry Discrimination
Opponents argue the law constitutes blatant discrimination that conflates Chinese nationals with the Chinese government. Clay Zhu, an attorney who partnered with the ACLU to challenge the law, stated: “Florida has gone far beyond what is necessary to combat the so-called CCP influence. We think this is a form of discrimination based on race, based on national origin and based on visa status.”
Zhu likened the law to past discriminatory legislation like the Chinese Exclusion Act, arguing there should be clear distinction between the Chinese Communist Party and individual Chinese nationals living in America. Many Chinese immigrants affected by the law have no connection to the Chinese government and, in some cases, fled China seeking freedom and opportunity in the United States.
The law’s impact extends beyond direct restrictions. Chinese nationals on legitimate visas who have lived in Florida for years, paying taxes, working in professional jobs, and contributing to their communities, suddenly found themselves classified as potential security threats based solely on their nationality. This creates a chilling effect that extends beyond property purchases to broader questions about belonging and acceptance.
Some critics also question the law’s effectiveness at achieving its stated security goals. If Chinese government entities genuinely seek to surveil military installations or influence Florida politics through property ownership, sophisticated actors could circumvent the restrictions by using shell companies, American partners, or other legal structures. The law primarily impacts ordinary individuals rather than state-sponsored actors with resources to navigate around restrictions.
Economic Implications
Florida’s decision to restrict Chinese property purchases carries economic consequences beyond individual transactions. Chinese buyers historically represented significant purchasing power in U.S. real estate markets, often paying cash and purchasing at or above asking prices. Excluding this buyer pool reduces demand in Florida’s property market, potentially affecting prices and sales volumes, particularly in higher-end segments where international buyers concentrate.
Real estate professionals, agents, title companies, mortgage brokers, and related service providers, lose business opportunities. For agents who specialized in working with Chinese clients or international buyers more broadly, the restrictions eliminated a significant income stream. Some relocated to other states or shifted their focus to different client segments.
The law also affects Florida’s broader reputation as a business-friendly state welcoming to investment and commerce. While DeSantis promotes Florida as an economic powerhouse attracting businesses and residents fleeing other states, restrictions targeting specific nationalities send mixed messages about openness and inclusion.
Chinese nationals considering employment opportunities in Florida now face an additional barrier, the inability to purchase homes creates uncertainty about long-term stability. Employers recruiting international talent may find Florida a less attractive location when employees cannot build equity through homeownership. Jin Bian expressed this concern: if nothing changes within a year or two, he plans to return to California, stating, “I don’t think California will ever have this kind of law.”
Looking Ahead
With the Eleventh Circuit’s ruling upholding Florida’s restrictions, the future trajectory of these policies grows clearer. Other states considering similar legislation now have federal precedent supporting their legal viability, likely encouraging additional states to adopt comparable restrictions.
For Chinese nationals currently living in Florida, the options are limited. Some, like Bian, plan to eventually relocate to states without such restrictions. Others, like Susan Li, intend to remain until circumstances change but feel unwelcome. Those considering moving to Florida must now factor these restrictions into their calculations about where to build their lives.
The legal battle may continue. The plaintiffs could appeal to the full Eleventh Circuit or petition the Supreme Court, though the latter rarely accepts property cases. Alternatively, opponents might pursue new legal strategies or lobbying efforts to modify or repeal the legislation.
The fundamental tension underlying these laws, balancing legitimate national security concerns against discrimination and equal treatment, remains unresolved. As geopolitical relations between the United States and China continue evolving, property restrictions represent one arena where these tensions manifest in ways that directly impact ordinary people’s ability to achieve homeownership and the American Dream.
Florida’s crackdown on Chinese property purchases marks a significant shift in U.S. real estate policy, reviving restrictions thought to be relegated to a discriminatory past while framing them as modern national security necessities. Whether this approach protects legitimate security interests or primarily inflicts discriminatory harm on individuals based on national origin will continue generating debate as more states consider following Florida’s lead.
