T
he 11th U.S. Circuit Court of Appeals, in a 2‑to‑1 decision, upheld Florida’s 2023 ban that bars Chinese nationals who are not U.S. citizens or lawful permanent residents from buying real estate or agricultural land in the state. The ruling confirms that the law does not violate federal statutes or the Constitution and allows Florida to enforce it, setting a precedent for other states to adopt similar restrictions.
**Background of the Ban**
In May 2023, Governor Ron DeSantis signed Senate Bill 264 into law. The bill targets “foreign principals” – entities or individuals operating outside the U.S. – and specifically lists China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria as “foreign countries of concern.” It prohibits any purchase of Florida real‑estate by anyone domiciled in China who is not a U.S. citizen or green‑card holder. The ban took effect on July 1, 2023. DeSantis described it as the nation’s strongest measure to counter foreign “malign influence,” claiming it protects Florida’s security and infrastructure from adversaries such as the Chinese Communist Party.
**Legal Challenge**
The American Civil Liberties Union (ACLU) filed a lawsuit in the Northern District of Florida on behalf of four Chinese residents and a real‑estate brokerage that assists Chinese and Chinese‑American buyers. The complaint alleged violations of the 14th Amendment and the Fair Housing Act, arguing the ban discriminates on the basis of national origin. A federal judge initially blocked enforcement pending appeal. The 11th Circuit panel, however, found the ACLU lacked standing because the plaintiffs had lived in Florida for years and were not “domiciled” in China. The court also ruled the ban does not breach anti‑discrimination laws. Judge Robert Luck noted that national, individual, land, and food‑security concerns motivated the legislation.
**ACLU’s Response**
ACLU senior staff attorney Ashley Gorski said the decision is disappointing but pledged continued opposition to laws that target immigrants by nationality or ethnicity. She emphasized that all people should be able to purchase homes in Florida without fear of discrimination.
**Implications for Florida’s Housing Market**
The ban’s enforcement is expected to alter the state’s real‑estate dynamics, particularly in the luxury segment. Chinese buyers typically purchase higher‑priced properties, so their exclusion may reduce competition for upscale homes, potentially lowering prices for domestic luxury buyers and slightly cooling the market. Joel Berner, a senior economist at Realtor.com, noted that international buyers often make all‑cash purchases, which are common in Florida’s luxury market, and that the ban could give local buyers a marginal advantage.
However, the impact on ordinary homebuyers is likely minimal. Chinese nationals constitute a small fraction of Florida’s international buyers—only about 3% in 2024—compared to Canadians and Latin Americans. Most Chinese buyers prefer states like California, Maryland, New York, and Hawaii, where they already hold a larger share of the market. Nationally, Chinese nationals account for 15% of foreign buyers in the U.S., but their influence in Florida remains limited.
In summary, the appellate ruling legitimizes Florida’s restrictive policy, potentially reshaping the luxury real‑estate market while leaving everyday buyers largely unaffected. The decision also signals that other states may pursue similar bans, raising broader questions about federal‑state authority and anti‑discrimination protections.
