No.

   Houses are expensive because of Government.  NAHB calculates that 40% of the cost of a new construction house is Government rules and regulations.

In Charlotte we have an affordable housing crisis right now, but we don't have that much foreign investment. If they stopped selling multi-million dollar condos in NYC to rich foreigners I don't see how that would all suddenly translate into affordable housing. Plus what Fred Griffin said.

The foreign conglomerates are gobbling our low-end housing up here in Charlotte as well. Many are in the guise of US investment companies, but they are managed by US property management companies.

Another issue we're having is our local government approving tear downs of our affordable housing to be developed into high-end housing. 

Per the Wall Street Journal, “The new law allows foreigners to purchase new-build apartments in large complexes but classifies existing homes, apartments and farms as “sensitive assets,” requiring examination by the Overseas Investment Office.”

I do not see any mention of vacant lots, as they also said “existing homes”, so it appears you may be able to build something, but not purchase a spec house.

Bigger issue facing homeownership are these huge REIT that have pulled their money out of Wall Street and started gobbling up SFRs at unprecedented rates. This is a whole ball of wax that will have long lasting repercussions on the market for decades to come

If getting the cost of housing down is your only goal, then YES.  It would, however result in a whole mess of other problems. 

Remember Newston's Third Law:
For every action, there is an equal and opposite reaction 

Not at all and could crash markets in Florida, NY and Vegas. The cause is over regulation. If towns, cities and sttes made it easier to build afforable homes, there would be more affordable homes

No.  We sure don't need anymore government interference in the real estate industry.

Annette,

It has nothing to do with foreigners buying.  I agree with Fred Griffin and Barbara Todaro comment.  We also have an affordable housing crisis in Santa Barbara county.  A

Interesting....

It is amazing what other countries get away with compared to America

That would hurt CA.

Bingo, Fred Griffin 

Nationalism strikes 

Yes, values would go down.

Hmm. Well, that is certainly ponder- worthy.

Not good to pass too many laws or be govenred by law alone....

I think it would only impact the luxury real estate market.

Oh well, just have to wait for Antartica to become available.

If that were the case in the US ... it would be a game changer in my market ... for certain! 

That said, it would not be a solution for affordable housing. 

New Zealand really did that? I don't think building a wall around real estate would fly in the U.S. we can't even agree on securing our borders. BUT if it were to happen prices would certainly decline.

No idea.

Presumably any time you restrict the buyers for any good or service the demand will drop.  If the demand drop is great enough and not replaced by another source and there are no other outside influences that counter this demand drop. Then prices will normally respond "in time" by coming down.

This also presupposes many other factors including that the SUPPLY side remains the same after the DEMAND drops.

Thanks for giving me the opportunity to dust off and polish my econ degrees for a moment lol.

Fred Griffin nailed this one!

if you are not a New Zealand citizen can only live there 6 months out of the year. then you must go.  I have clients who own a beautiful beach home in New Zealand, a home in Homer and a home in Utah. Life is good for them

I imagine New Zealand has become saturated with folks like this and are protecting their citizens. Much smaller country. We still have room to roam

I agree with Fred Griffin regarding the regulations stifling builders and development 

Nationalism is seldom a good idea.

America is unique in the opportunity is affords all people.  

Many properties would be in trouble if they could only be purchased by citizens.

Many locations in the US would be hurt if only US citizens could buy! In those areas where non-US citizens had to sell prices would nose dive!

Did the non-citizens riot?

We are seeing little foreign buyers in Denver, but prices are through the roof.

I don't think it would have a big influence in the overall prices especally in loswer value homes

That might be one of the outcomes, in addition to a major departure of lots of money out of the U.S. 

Well it would certainly change the market but that is never going to happen. It might hurt someboy's feelings and they'd complain how unfair it was. Then there would be an injunction filed and it would be tied up in court for years. 

Seattle is building tiny houses for the homeless. I don't think home values can be sustained in some areas. I doubt if USA will ever require that only citizens can buy real estate.

I remember reading about this law being proposed.  Interesting that it passed.  Something like this would NEVER fly in America.  California already gives drivers licenses to illegals.  Even proposing a law like this would likely get you on the most hated list.

Annette Lawrence , Palm Harbor, FL 727-420-4041 - not likely to happen in the USA.

Annette Lawrence , Palm Harbor, FL 727-420-4041 interesting concept. Then, most likely, REITs will purchase properties.

I actually don't think that's a good idea just for that reason. Auckland is a nice place & you should be able to owe a condo there if you want.

To get rico Asians from buying the entire towns?