Governor of New York. Kathy Hochul wants to make it harder for private equity firms and hedge funds to buy residential real estate in the Empire State.
Hochul on Thursday proposed several measures in the state budget that would prevent institutional investors from bidding on homes in the first 75 days they are listed on the market.
The governor’s plan also calls for eliminating some tax benefits, such as interest deductions for companies that buy homes worth well above market value.
Hochul said in a statement that “shadow private equity giants are buying up the housing supply in communities across New York, leaving everyday homebuyers with fewer affordable options.”
But the owners’ lawyers supported the proposals. James Whelan, president of the Real Estate Board of New York, told the New York Times it was “another example of the policy that will stifle housing investment in New York.”
Rising housing costs are largely a problem caused by a lack of supply, according to experts.
Between 2012 and 2022, New York State added approximately 462,000 housing units, an increase of 5.7%—a growth rate that is below the national average.
New York State ranks 32nd in the nation in housing unit growth during this period, according to data compiled by the State Comptroller’s Office.
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 as much as 40% of the single-family rental market by 2030.
In 2023 there were more than 145 million housing units in the country, according to US Census data.
A report from Harvard University’s Joint Center for Housing Studies found that non-individual investors — which includes landlords forming limited liability corporations — owned a quarter of single-family rentals in 2021.
According to the report, larger investors tend to buy newer and larger homes in places with growing populations and rapid rent growth.
A separate report from the U.S. Government Accountability Office found that the nation’s five largest institutional investors owned nearly 2% of all single-family rental homes nationally in 2022, with the issue most pronounced in the Sunbelt states. .
Hochul, a Democrat, has introduced a series of economic proposals for the state legislative session aimed at addressing the state’s high cost of living.
On Thursday, she also announced proposals to boost the construction of starter homes and help first-time homeowners with down payments.
By postal wire
#Kathy #Hochul #Proposes #Rules #Curb #Home #Purchases #Hedge #Funds #Buyout #Firms
Image Source : nypost.com