NY Governor Hochul Seeks to Limit Hedge Funds From Buying Up Homes [Video]

Democratic New York Governor Kathy Hochul is seeking to limit hedge funds, private equity firms and other institutional investors from buying up one-and two-family homes.

Why It Matters

Private equity firms own over 500,000 homes nationwide, according to a news release from Hochul issued Thursday. The release said that by some estimates, these firms are expected to own up to 40 percent of the single-family rental market in five years.

“When large investors hold a disproportionate share of a local housing market it removes opportunities for homeownership, exacerbating the existing scarcity and driving up prices for remaining homes on the market,” the release read.

What To Know

Hochul is proposing to require institutional investors to wait 75 days to make an offer on one- or two-family homes and to limit certain tax benefits when these investors buy houses.