New York will soon ban private equity firms and large institutional investors from buying single- and two-family homes during the first 90 days they’re on the market. The measure, included in the FY 2026 budget, aims to protect first-time homebuyers and working families from being priced out of the housing market.
Governor Kathy Hochul announced the policy as part of her broader plan to address affordability and level the playing field in the state’s tight real estate market.
What the 90-day housing ban does
Starting in 2025, the new law will:
- Prohibit private equity firms and institutional investors from purchasing single-family and two-family homes for the first 90 days after listing
- Apply to residential properties across New York State, not just high-demand urban markets
- Give priority to individual buyers and families, especially first-time and moderate-income homebuyers
The state will enforce the rule through the Department of State, with penalties for violations.
Why New York is targeting private equity
Private equity and corporate investment groups have accelerated their purchases of homes across the U.S., including in suburban and upstate New York. These firms often outbid individual buyers with cash offers, convert homes into high-rent properties, and shrink the pool of homes available for long-term ownership.
Hochul said the new restriction gives everyday New Yorkers a fair shot at buying a home.
“Wall Street shouldn’t be competing with young couples trying to start a family,” Hochul said. “We’re putting people first—and helping New Yorkers build generational wealth.”
Who this affects
The ban affects:
- Hedge funds and investment groups buying homes in bulk
- REITs (real estate investment trusts) acting as landlords
- Buy-to-rent firms that turn family homes into long-term rentals
It does not impact local small-business landlords or families purchasing property as individuals.
Housing affordability remains a major challenge
Home prices across New York have continued to rise. In many areas, local buyers are being squeezed out by institutional capital and limited housing inventory.
This new law is part of a broader affordability strategy, which includes:
- Expanded housing development under the Pro-Housing Communities program
- Zoning reform support for New York City’s City of Yes initiative
- A multi-year goal to build 100,000 new affordable homes
What housing advocates are saying
Affordable housing groups praised the policy as a necessary first step. Some advocates are pushing for even stronger limits on investor purchases or vacancy taxes on underused property.
Critics argue that the policy may shift activity to the 91st day or beyond, unless paired with longer-term reforms. Still, housing policy experts say it’s a meaningful attempt to rebalance the market.
When does the policy start?
The private equity housing ban takes effect in early 2025, with state rulemaking underway now. The Department of State will publish compliance guidance before the law is enforced.
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