As housing costs continue to rise, a New Mexico lawmaker is taking aim at Wall Street and other corporations purchasing single-family homes as investment properties. Senator Harold Pope, a Democrat, has pre-filed a bill to prohibit hedge funds, private equity firms, and other businesses from acquiring single-family residential properties.
“I understand people want to look at the market and investments, but we’re at a point where we need stronger consumer protections,” Senator Pope said.
The one-page bill aims to “prohibit a hedge fund, private equity firm, corporation, or other business from purchasing a single-family residential property.”
Also Read – New Mexico Braces for Winter Storm with Snowfall and Freezing Temperatures
Senator Pope believes this measure could help level the playing field for individual buyers. “This is one tool we can use to increase access for consumers, especially New Mexicans, when it comes to purchasing a home,” he said. “Hedge funds and private equity firms can often make cash offers, which regular buyers simply can’t compete with.”
Similar legislation has surfaced in other states, such as New York, where Governor Kathy Hochul proposed a 75-day waiting period before large firms can bid on newly listed homes.
“These companies are buying homes, sometimes leaving them unoccupied, while people in need of housing struggle to find options,” Senator Pope explained. “It’s driving up housing costs and, in some cases, increasing rents due to limited availability.”
However, not everyone supports the proposal. The New Mexico Association of Realtors raised concerns about potential unintended consequences.
“We don’t want to see corporations removed from investing in developments or purchasing blighted homes that could be rehabbed and resold,” said Rob Wigton, CEO of the New Mexico Association of Realtors.
Also Read – Hip-Hop Mourns OG Maco: Rapper Dies at 32 After Self-Inflicted Injury
Senator Pope countered that the bill is carefully designed to avoid affecting corporations involved in home building or individuals seeking to purchase rental properties.
The 60-day legislative session is set to begin on January 21, and Senator Pope is optimistic about the bill’s potential to address the state’s housing challenges. “This is about making sure New Mexicans have a fair shot at owning a home,” he said.
