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ew York Governor Kathy Hochul is pushing to limit the influence of private equity firms and hedge funds in the state's residential real estate market. Her proposal includes a 75-day waiting period before these investors can bid on homes, as well as removal of tax benefits for firms that buy properties at inflated prices.

    Hochul argues that "shadowy private equity giants" are driving up housing costs by buying up available supply, leaving ordinary homebuyers with fewer affordable options. However, landlord advocates counter that the proposal will stifle investment in New York's housing market.

    Experts point out that the root cause of rising housing costs is a lack of supply, not speculation by investors. Between 2012 and 2022, New York state added only 462,000 new housing units, a growth rate below the national average.

    Private equity firms own over 500,000 homes nationwide, with some estimates suggesting they could control up to 40% of the single-family rental market by 2030. A Harvard University report found that non-individual investors owned a quarter of single-family rentals in 2021, often targeting newer and larger homes in areas with rapid population growth.

    Hochul's proposal is part of a broader effort to address New York's high cost of living. She has also announced plans to incentivize the construction of starter homes and help first-time homeowners with down payments.