Nebraska restricts foreign real estate purchases under new legislation effective January 2025

Legislature Bill 7, introduced in Nebraska on March 19, 2025, aims to tighten restrictions on foreign ownership of real estate in the state, a move that has sparked significant debate among lawmakers and stakeholders. The bill specifically prohibits nonresident aliens, foreign corporations, and foreign governments from acquiring real estate or long-term leasehold interests in Nebraska, effective January 1, 2025, unless exempted under the Foreign-owned Real Estate National Security Act.

The legislation is a direct response to growing concerns over national security and economic sovereignty, particularly regarding entities identified on U.S. sanctions lists or those deemed a threat to national security by the Secretary of Commerce. Proponents argue that the bill is essential for protecting local interests and preventing foreign influence in Nebraska's real estate market. "This is about safeguarding our communities and ensuring that our land remains in the hands of Americans," stated a key supporter during the legislative discussions.

However, the bill has faced opposition from various sectors, including real estate professionals and foreign investors, who warn that such restrictions could deter investment and economic growth in the state. Critics argue that the bill may lead to unintended consequences, such as a decrease in property values and a slowdown in development projects. "We need to find a balance that protects our interests without shutting out potential economic opportunities," remarked a local real estate agent.

As the bill progresses through the legislative process, its implications could resonate beyond Nebraska, potentially setting a precedent for other states grappling with similar concerns over foreign ownership. The outcome of this legislation will likely influence the state's economic landscape and its relationship with foreign investors in the coming years. With discussions ongoing, stakeholders are closely monitoring the bill's trajectory and its potential impact on Nebraska's real estate market and broader economy.