N.Y. governor wants to limit hedge funds from buying up single-family homes

Governor Kathy Hochul plans to introduce legislation to curb hedge funds' purchase of single-family homes in New York. The proposed measures include a 75-day waiting period for large investment firms before bidding on new homes and limiting tax benefits for such purchases. Concerns have been raised about hedge funds' growing ownership of single-family homes, reducing housing availability for individual buyers and families. Nationwide, private equity firms own over 500,000 homes, and estimates project they could control 40% of the single-family rental market by 2030. Non-individual investors, including hedge funds, owned 25% of single-family rentals in 2021, often purchasing newer, larger homes in areas with population growth and rising rents. Hedge funds' financial advantages make it difficult for average home buyers to compete, particularly for starter homes. Hochul's proposals aim to address the state's high cost of living by incentivizing starter home construction and assisting first-time homeowners with down payments.