, Columnist
If Wall Street Wants to Buy More Houses, Let It
More liquidity in a market is almost always a good thing.
What if there were fewer buyers?
Photographer: Angus Mordant/Bloomberg
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New York Governor Kathy Hochul has proposed restrictions on large financial firms buying homes, and state legislators in Virginia and Nebraska have similar ideas. Their rationale is not difficult to divine: Homes are increasingly expensive in many parts of the US, so if demand is limited, perhaps the price will fall. Not to mention that, politically speaking, large financial firms are not the most sympathetic actors.
Unfortunately, even if these proposed laws prove popular, they are not in the general interest.