Institutional investors would face new restrictions on buying housing units in New York state under a proposal that Gov. Kathy Hochul aims to pass in the state budget due April 1.

Widespread purchases of single-family homes by institutional investors may be contributing to soaring housing prices and low vacancy rates across the country.

To address the rising cost of housing across New York, Gov. Kathy Hochul wants to limit purchases of single-family homes by private equity firms and hedge funds.

Hochul's priorities for the year include making it harder and less attractive for institutional investors like hedge funds and private equity firms to buy single-family and two-family homes. She hopes to require large investors to wait 75 days before making an offer on such properties and make the homes less lucrative from a tax perspective by banning investors from using programs such as interest and depreciation deductions.