Governor Hochul Unveils Housing Affordability Measures

$50 million would provide down payment assistance for first-time homebuyers, aiming to remove financial barriers for families entering the housing market.

Governor Kathy Hochul announced a series of housing initiatives aimed at addressing New York’s ongoing housing shortage and enhancing affordability. The proposals made in light of her 2025 State of the State address, emphasize creating more homeownership opportunities and safeguarding affordability for everyday residents. This builds on the state’s historic $25 billion, five-year housing plan, which has delivered 50,000 affordable homes in just two years.

One of Governor Hochul’s key proposals targets large institutional investors, such as hedge funds and private equity firms, that dominate the single- and two-family home market. These entities often outbid individual buyers, using cash offers and waiving common purchasing conditions, which restricts opportunities for first-time and low- to moderate-income homebuyers. To counter this, Hochul plans to introduce legislation imposing a 75-day waiting period before institutional investors can bid on these properties. Additionally, the Governor proposes limiting certain tax advantages for institutional investors, including deductions for interest and depreciation.

“These measures aim to level the playing field, making homeownership attainable for more New Yorkers.”

Governor Kathy Hochul

The Governor also proposed allocating $50 million to support the construction of starter homes, including innovative approaches like modular and factory-built homes, to increase market mobility. Another $50 million will provide down payment assistance for first-time homebuyers, aiming to remove financial barriers for families entering the housing market.

To make newly developed homes more affordable, Hochul plans to introduce a property tax incentive for homes built with the help of governmental or nonprofit entities and sold to low- and moderate-income buyers. This measure seeks to reduce tax burdens on new homeowners and increase the supply of affordable housing.

Governor Hochul highlighted the issue of appraisal bias, which disproportionately affects minority homeowners, contributing to racial wealth gaps. Proposed actions include enforcing anti-discrimination standards, diversifying the appraiser workforce, and holding appraisers accountable for biased practices.

The Governor’s proposals follow significant housing investments made in the 2025 state budget, including $1 billion for affordable housing in New York City and $500 million to build up to 15,000 homes on state-owned properties. Hochul’s administration has also introduced new incentives for housing developments statewide, with a focus on alleviating tenant and homeowner burdens during the current housing crisis.

Experts and advocates, including Habitat for Humanity and the New York Land Bank Association, expressed support for Hochul’s comprehensive approach. They praised the focus on starter homes, curbing corporate purchases, and promoting fair housing practices as essential steps toward building a more equitable housing market.

The Governor’s housing initiatives, if enacted, aim to transform New York’s housing landscape by increasing affordability and opportunities for homeownership, ensuring more families can achieve economic stability and generational wealth.