ALBANY, NY — ALBANY, N.Y. (AP) – New York Gov. Kathy Hochul said Thursday that the new law will push to make it harder for hedge funds to buy large numbers of single-family homes in the state.
In a statement, Hochul said he will propose legislation this year that would require a 75-day waiting period for large investment firms to bid on new homes coming on the market and limit some tax benefits when companies buy homes.
The plan comes as a legislator somewhere else They also sought to address public concerns that hedge funds or other large investors are buying up single-family homes and reducing the housing supply for buyers and families. The experts He blamed the housing shortage on a number of factors, including high mortgage rates and years of low construction of new homes.
Hochul, in his statement, said “seeming private equity giants are buying up housing stock in communities across New York, leaving everyday homebuyers with fewer and fewer affordable options.”
Private equity firms own more than 500,000 homes nationwide, according to the governor’s news release, with some estimates expecting the firms to own 40 percent of the single-family rental market by 2030. There were over 145 million homes in the country. in 2023, according to the US Census the data.
A the report Harvard University’s Joint Center for Housing Studies found that non-individual investors—including landlords who form limited liability corporations—owned a quarter of single-family rentals in 2021. Large investors tended to buy new and larger homes in areas with population growth and rapid rent increases, according to the report.
A different the report The U.S. Government Accountability Office found that the country’s five largest institutional investors owned nearly 2% of all single-family rental homes in 2022, about 300,000 homes.
Hochul, a Democrat, has introduced several economic proposals to the state legislature aimed at addressing the state’s high cost of living. On Thursday, he also announced proposals to boost starter home construction and help first-time homeowners make down payments.
