New York City has implemented stricter regulations for non-resident buyers purchasing residential properties, including a 30-day cooling-off period, a 15% minimum down payment, and a 1-2% transfer tax surcharge. Non-residents must also meet additional due diligence requirements and commit to a minimum ownership period of five years to qualify for certain tax incentives. These rules aim to curb speculative buying and encourage long-term investment.

The reforms stem from rising concerns over foreign investment inflating housing prices and reducing affordability for local buyers. Data from the New York City Department of Finance shows that non-resident purchases accounted for 12% of all home sales in 2022, up from 8% in 2020, while median home prices surged 18% citywide. A 2023 report by the Real Estate Board of New York (REBNY) revealed that foreign buyers often purchased properties with cash or low-interest loans, exacerbating market volatility. The cooling-off period and down payment mandates are modeled after successful policies in Singapore and香港, which reduced speculative transactions by 25% within two years. Additionally, the transfer tax surcharge aligns with Mayor Adams’ 2023 budget proposal to generate $1.2 billion in new revenue from housing market reforms. By targeting non-resident behavior, the regulations aim to stabilize prices and prioritize local buyers, though critics warn it may deter foreign capital and slow economic growth.