Governor Kathy Hochul has announced a series of proposals aimed at increasing access to homeownership and tackling New York’s housing affordability crisis. The measures, unveiled as part of her 2025 State of the State agenda, include a $100 million investment to boost starter home construction and down payment assistance for first-time buyers, along with policies to curb corporate ownership of single- and two-family homes.
Hochul highlighted the urgency of the crisis, stating, “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. I’m proposing new laws and policy changes to put the American dream of owning a home within reach for more New Yorkers than ever before.”
The governor’s initiatives aim to address a shrinking housing supply that has made purchasing a home increasingly difficult. Key elements include:
- Starter Home Innovation Funding: A $50 million program to incentivize building smaller, more affordable homes, using innovative construction methods like modular designs.
- First-Time Homebuyer Assistance: Another $50 million to support low- and moderate-income buyers with down payments.
- Tax Incentives for Affordable Homes: A new property tax incentive for homes built by nonprofits, community land trusts, and other entities, designed to make them accessible to low-income buyers.
- Curbing Corporate Housing Purchases: Legislation to disincentivize institutional investors, such as private equity firms, from buying single- and two-family homes, including a 75-day waiting period before such entities can make offers.
Hochul also proposed reforms to combat appraisal discrimination, which disproportionately impacts minority homebuyers. These reforms include enforcing anti-discrimination measures and diversifying the appraiser workforce.
The proposals build on Hochul’s $25 billion, five-year housing plan to create or preserve 100,000 affordable homes. Already, 50,000 homes have been developed, placing the plan ahead of schedule. Hochul’s broader housing strategy includes reducing zoning restrictions, a $500 million capital fund for building on state-owned property, and measures to boost housing development in New York City.
Housing advocates praised the initiatives. Sabrina Lippman, CEO of Habitat for Humanity NYC and Westchester County, said, “Increasing the supply of starter homes and ensuring low-income homeowners are not displaced are critical components to building a New York we can all afford.”
These measures are expected to help level the playing field for first-time buyers, protect communities from speculative real estate practices, and support New York’s long-term housing stability.
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