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Hochul seeks to deny incentives for institutional homebuyers
A Canadian real estate investment firm specializing in single-family rental properties last month completed the purchase of 39 houses in Rochester, including these two on Locust Street. (File photo by Kevin Oklobzija)
A Canadian real estate investment firm specializing in single-family rental properties last month completed the purchase of 39 houses in Rochester, including these two on Locust Street. (File photo by Kevin Oklobzija)
Hochul seeks to deny incentives for institutional homebuyers
Listen to this articleGov. Kathy Hochul is placing a target on the back of institutional investors, believing that denying homebuying incentives to private equity firms will help make housing more affordable for New Yorkers.
Hochul intends to propose legislation that will require a 75-day waiting period for institutional investors to make an offer on one- or two-family homes, she announced on Thursday morning.
Her proposal also will reduce tax incentives for private equity buyers, denying them interest deductions, depreciation deductions and other expenses associated with the ownership of single family rental properties.
“Last year we passed the most transformative plan in half a century to build more housing and lower costs for families,” Hochul said in a news release. “But shadowy private equity giants are buying up the housing supply in communities across New York, leaving everyday homebuyers with fewer and fewer affordable options.
“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.”
Nationally, private equity firms own more than 500,000 homes and, the governor’s office said, could own up to 40 percent of the single-family rental market by 2030.
Rochester has felt the impact of corporate investors on rental properties. Firms based in Toronto and Walnut Creek, Calif., each have purchased more than 200 single-family houses, the vast majority in the city, since 2022.
Hochul’s office said corporate ownership of single-family rentals leads to higher prices for renters but also drives up prices for the remaining homes on the market. That, in turn, squeezes out first-time and low- to moderate-income buyers.
“The innovative initiatives announced today will remove barriers, increase the supply of affordable homes, create equity in the market and justice for homebuyers, and make owning a home achievable,” Homes and Community Renewal Commissioner RuthAnne Visnauskas said. “This bold homeownership package is another example of the governor’s commitment to using every tool at our disposal to increase affordability and create the homes New Yorkers need.”
Hochul also is proposing as part of her budget $50 million in capital funding to incentivize the building of more starter homes — including factory-built and modular development — plus a $50 million fund to provide down-payment assistance.
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