Dallas considers restricting home sales for real estate investors

[Adrian Clapp]

DALLAS - The city of Dallas may consider limiting the number of homes real estate investors can buy.

The move would aim to tackle the rising home prices across the DFW area.

Median home prices in North Texas jumped 22 percent year over year in March.

Combined with higher mortgage rates, many individual buyers are getting priced out of the market.

Dallas’ director of housing explained how Canada tackled the problem.

"Are we working on a bigger policy regarding the scourge of investment buyers? It is across the country, where individuals are no longer buy homes but REITs are," asked Dallas Councilwoman Jaynie Schultz.

"Canada restricts how many foreign investors can come into your market and buy up your real estate," said David Noguera, the Dallas director of housing.

Canada banned foreign investors from buying homes for two years.

Along with considering its own policy, the city may push for state legislation.

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[Kenneth Yim]

Quote from @Bruce Lynn:

So they want to kill their cash cow?   Talk about this in lots of places.  Saw Toronto is talking about no more investment properties in a news clip today.

Got to be careful how that turns out....can be big and unintended consequences to that crazy idea.

I'm from Toronto (Canada). That is not happening, anyone (Canadian) can buy Toronto investment properties. This is not on the table, to remove private residential investment.

How is it fair that individuals are not allowed to purchase (residential?) investment properties, but REIT's are? That just makes it way more frothy to institutionalize real estate. Are they going to lower the price for real estate? Their entire mandate is to make profit. How does this make any sense?

By the way, according to Statistics Canada, the amount of foreign ownership in Canada in 2019 is only at 2.6%.  Everyone smart here knows that this is just a headline to buy votes and is going to do nothing to control real estate prices.