Billionaire Stephen Ross and owner of the Miami Dolphins has been making headlines lately because of his support for President Donald Trump, who he thinks has done a lot to boost the United States economy.
And in a recent interview with Yahoo Finance, Ross said that a housing slowdown could be imminent when asked if the nation is getting close to another bubble.
“I mean, I think real estate today is probably in the eighth inning, you know?” said Ross, chairman and founder of the global real estate firm Related Companies.
“We’re certainly not starting something fresh. You know, we’re at a point now where I think there will be a slowdown because it has to happen,” said Ross, who stopped short of saying that there’s a housing bubble.
Ross, who made his fortune in real estate development, predicted that the housing downturn would come amid an unavoidable broader slowdown in the economy.
“Things don’t go straight up, so you know at some point, we’re at a recession,” he added.
While lower interest rates may be handing the housing market a temporary uplift, the market still faces some longer term issues, such as a lack of adequate inventory owing to a construction labor shortage.
The supply of luxury housing may have increased recently, but according to Redfin, an escalating housing crisis has left little middle- to low-income housing stock to accommodate the number of people interested in residing in coastal cities in particular.
Politicians from both side of the block agree that there is a housing shortage in the U.S. A debate is going on about whether more deregulation could assist in building housing that can accommodate more units.
There is also a gulf about whether the government should intervene to provide more affordable housing. And Ross believes a possible solution for the problem could involve subsidies.
“I think we need certainly, a lot of affordable housing and [need to figure] out ways we can provide for that,” Ross told Yahoo Finance.
“That’s going to take government subsidies.”