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.

New York Gov. Kathy Hochul is moving to inhibit institutional investors from playing in the housing market sandbox, but the impact of any action may be limited. On Thursday, Hochul proposed several measures to curtail hedge funds and private equity firms from snapping up swaths of homes,

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.

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.