Why New York Must Ban Private Equity from Buying Residential Homes
The Problem at a Glance
- Private equity (PE) firms and large corporate investors are rapidly expanding into single-family home markets across the U.S.
- They rely on all-cash, no-contingency offers, outcompeting ordinary homebuyers — especially first-time buyers.
- Their acquisitions concentrate most heavily in lower- and moderate-priced homes, the exact homes New Yorkers rely on to begin building wealth.
Bottom Line: Every home purchased by a private equity firm is one fewer opportunity for a New York family.
Impact on First-Time Homebuyers
1. PE firms outbid local buyers
Cash-backed investors outbid individual buyers by 20–50% more frequently in competitive markets.
Many New York buyers cannot compete with instant cash offers and waived inspections, creating structural disadvantage.
2. PE firms target starter homes
According to national housing analyses, firms focus on entry-level, lower-priced homes, the exact segment where young families shop.
Once purchased, these homes are often kept as rentals indefinitely — removing them permanently from the owner-occupied market.
3. Home prices increase faster in investor-heavy ZIP codes
Studies show home prices rise up to 20% faster in neighborhoods with heavy institutional buying.
NY markets with limited supply, like Long Island and Westchester, are especially vulnerable to this price inflation.
Impact on Renters and Neighborhoods
1. Higher rent increases
Private equity landlords raise rents significantly faster than inflation, according to GAO and multiple academic studies.
Fees — from payment processing to “convenience” charges — add hidden costs that disproportionately hurt lower-income families.
2. Higher eviction rates
Research shows PE-owned rentals have 15–30% higher eviction filing rates compared to small landlords.
During the pandemic, PE-backed firms were responsible for tens of thousands of eviction filings nationwide, even with protections in place.
3. Worse maintenance and tenant experiences
Tenants consistently report slower repairs, more deferred maintenance, and less responsive management under corporate ownership.
- Profit-maximizing models incentivize cutting maintenance and increasing turnover, not community stability.
Long-Term Market Concerns
1. Permanent removal of housing from local buyers
Homes purchased by institutional investors rarely return to the owner-occupied market.
- When sold, they are typically transferred in bulk to other investors — not families.
2. Corporate consolidation threatens affordability
Large investors can influence local rent levels, especially in lower-priced neighborhoods.
New York already faces a supply shortage; corporate competition makes it worse.
3. Housing becomes a financial asset, not a community resource
Private equity treats housing as a high-yield investment class.
- This shift undermines housing’s role as the primary wealth-building tool for working and middle-class families.
Why New York Should Act Now
1. Housing affordability is at crisis levels
New York has some of the highest housing costs in the nation.
The median home price on Long Island now exceeds $650,000+, far beyond what most first-time buyers can afford.
2. New York already leads on tenant and consumer protections
Banning private equity from buying homes aligns with the state's broader efforts to address affordability and market fairness.
3. Other states are exploring similar legislation
States like California, Minnesota, and North Carolina have introduced or studied restrictions on institutional home purchases.
- New York can lead the nation with the strongest protections.
Policy Solutions for New York
1. Ban private equity, hedge funds, and large corporate investors from acquiring single-family homes and small multi-family properties.
2. Prioritize homeownership for New Yorkers through “first look” programs giving local residents, first-time buyers, and nonprofits priority access before investors.
3. Require investor-owned rental properties to eventually reenter the owner-occupied market rather than being bulk-sold to other institutional investors.
4. Increase transparency: mandate public reporting of beneficial ownership, eviction filings, and rent increases for any corporate owners.
5. Expand down-payment assistance and financing support to help first-time buyers compete more effectively.
Core Message: What Is at Stake
Housing is becoming increasingly financialized, owned by corporate portfolios instead of families.
Without decisive action, corporate control will make homeownership unattainable for millions of New Yorkers.
- Banning private equity from buying homes is a direct, targeted solution to restore affordability and opportunity.
This is about fairness.
This is about community.
This is about protecting the American — and New York — dream of homeownership.
#TakeBackOurHomes