New York State Governor Kathy Hochul on Thursday unveiled a plan to address New York’s housing crisis as part of her 2025 State of the State agenda, with a focus on expanding homeownership opportunities and affordability.
The governor proposed $50 million in capital funding to promote the development of starter homes, including modular and factory-built designs, and an additional $50 million for down payment assistance for low- and moderate-income aspirant home owners, according to a press release.
Hochul further suggested a property tax incentive for homes developed with government or nonprofit assistance, as well as strengthening laws against appraisal bias to ensure racial equity in homeownership.
Additionally, the governor said she wants to curb the influence of hedge funds and private equity firms in the housing market, with proposed legislation calling for a 75-day waiting period before institutional investors can bid on one- and two-family homes and reduce tax advantages for such entities.
"The cost of living is just too damn high -- especially when it comes to the sky-high rents and mortgages New Yorkers pay every month,” Hochul said. “Last year, we passed the most transformative plan in half a century to build more housing and lower costs for families. 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."
Nationally, private equity firms own more than 500,000 homes. According to some estimates, private equity firms are expected to own up to 40 percent of the single-family rental market by 2030. When large investors hold a disproportionate share of a local housing market it removes opportunities for homeownership, exacerbating the existing scarcity and driving up prices for remaining homes on the market. These consequences are felt most intensely by first-time and low- or moderate-income homebuyers, the governor said.
