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

The proposal could make New York a model for increasing home ownership by eliminating incentives for hedge funds, private equity groups and other institutional investors who would have to wait 75 days before making offers on single and two-family homes under the Democratic governor’s plan.

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.