New York Gov. Cathy Hochul wants to make it harder for private equity firms and hedge funds to buy up residential real estate in the Empire State.
Hochul on Thursday proposed several measures in the national budget that would prevent institutional investors from bidding on homes for the first 75 days after they are listed on the market.
The governor's plan also calls for eliminating certain tax benefits, such as interest deductions for businesses that buy homes at prices well above market value.
“Shady private equity giants are buying up the housing supply in communities across New York, leaving everyday homebuyers with fewer and fewer affordable options,” Hochul said in a statement.
But landlord advocates denounced the proposal. James Whelan, Chairman of the New York Real Estate Board, said: told the New York Times He said this was “another example of New York's policies to suppress housing investment.”
According to experts, the soaring housing prices are mainly caused by a lack of supply.
From 2012 to 2022, New York State added approximately 462,000 housing units, an increase of 5.7%. This rate of increase is below the national average.
New York State ranks 32nd in the nation for housing unit growth over this period, according to the data. Compiled by the National Audit Bureau.
According to the governor's news release, private equity firms own more than 500,000 homes nationwide, and some estimates suggest that by 2030, private equity firms will own up to 40% of the single-family rental market.
According to U.S. Census data, the number of housing units in the country will exceed 145 million by 2023.
In 2021, non-individual investors (including landlords who formed limited liability corporations) owned a quarter of single-family rental properties, according to a report from Harvard University's Joint Center for Housing Research.
The report says large investors tend to buy newer, larger homes in places where populations are growing and rents are rising rapidly.
A separate report from the U.S. General Accounting Office found that the nation's five largest institutional investors will own nearly 2% of the nation's single-family rental homes in 2022, and the problem was most pronounced in Sunbelt states. .
Hochul, a Democrat, has submitted a series of economic proposals to the state Legislature aimed at solving the state's high cost of living.
On Thursday, it also announced proposals to encourage the construction of starter homes and help first-time homeowners with down payments.
with post wire
