New York Gov. Kathy Hochul is planning to offer proposals designed to restrict hedge funds and private equity firms from acquiring large numbers of single-family homes across the state.
The New York Times reports the governor will put forth her proposals at next week’s State of the State address. The proposals would prohibit institutional investors from bidding on properties in the first 75 days that they are on the market, and she is also seeking to remove certain tax benefits, such as interest deductions, when the properties are bought.
“Shadowy private equity giants are buying up the housing supply in communities across New York, leaving everyday homeowners with nowhere to turn,” said Hochul in a statement. “I’m proposing new laws and policy changes to put the American dream of owning a home within reach for more New Yorkers than ever before.”
According to the most recent data from the US Government Accountability Office, five of the largest investors in the United States owned 2% of the country’s single-family rental homes, mostly in the Sun Belt and Southern states. The report claimed it was “unclear how these investors affected homeownership opportunities or tenants because many related factors affect homeownership — e.g., market conditions, demographic factors and lending conditions.”
Photo courtesy of Gov. Hochul’s Facebook page
