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Real Estate Will 'Get Whacked' As Savings Fall, Billionaire Investor Says – Markets Insider

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  • Billionaire investor Jeff Greene says to expect discounts through real estate, as consumer savings fall.
  • Discounts on office spaces will also be fueled by remote work, told CNBC.
  • “In the next 12 to 24 months, you’re going to see some extraordinary opportunities to buy.”

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Real estate investors should be on the lookout for a wave of distress to create opportunities in the sector, billionaire investor Jeff Greene said on Wednesday.

That’s not just because remote work is fueling a rise in office vacancies; at the same time, the trillions of dollars injected into the economy during the pandemic are gradually used up, fueling a retreat from virtually all property sectors. 

“What’s that going to mean for demand for everything? Retail, office, apartments — every aspect of real estate is going to get whacked, and I think we’re just in the first inning,” the real estate mogul told CNBC

According to Greene, the injection of funds during the COVID pandemic boosted spending, but declining funds lowers a demand for offices. 

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Demand for commercial real estate is further pulled down by the continued prevalence of remote work, with 20%-25% of US employees still working from home. As office leases expire over the next decade, vacant spaces will jump by 267 million square feet, Goldman Sachs said this week.

Discounts won’t affect the office market equally, Greene said, noting that trophy properties won’t see the same heavy price drops as older real estate. 

“I think when it comes to the B and the C properties, the worst is yet to come,” he said, citing that such properties may have to face a complete lack of tenants, and, therefore, a lack of bids. Instead, value will come from how offices can be repurposed, as has begun happening in some areas.

“I would say you know, hold on to your cash and get ready cause there’ll be some — my guess is, in the next 12 to 24 months — you’re going to see some extraordinary opportunities to buy,” he said.

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Greene is reputed for predicting the 2008 housing bubble, on which he made $800 million. Having warned of an impending recession over the summer, he told CNBC that the decline of COVID-era investments will fuel unemployment.

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Housing and Accommodation Challenges Experienced by Canada’s Black Population

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Every human is entitled to housing and accommodation as part of their fundamental human rights and needs. While some residents of Canada enjoy this, the black community is socially exempted.

Canada’s Black population is currently experiencing discrimination from homeowners and landlords who prevent them from renting a home. Some blatantly refuse individuals with darker skin tones, while others raise the terms needed to rent the place, making it almost impossible for the average black person to sign an agreement.

According to a study by the Ontario Human Rights Commission, landlords often refuse people of African descent because some believe they are criminals or have too many children. These stereotypes harm the black population, preventing them from getting crucial accommodations for themselves and their family.

The situation becomes more tedious for immigrants as their post-arrival experience is riddled with fear, isolation, and anxiety. These individuals face discrimination from Landlords during the renting process as they encounter harassment and refusal for nothing more than their skin colour.

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Factors like culture, economics, and language barriers also reinforce these feelings of inferiority in African immigrants, and many are yet to adjust to Canada’s language or ways of operation.

Housing is also scarce in Canada due to extremely low vacancy rates, insufficient social accommodation, and rent-geared-to-income housing. Therefore, getting a place to stay becomes more tricky for immigrants since the low vacancy rate results in higher rent fees.

Unfortunately, limited data that describes the racial background of renters makes it challenging to demonstrate and quantify the extent of discrimination that renters of colour experience in housing.

The absence of this race-based data hinders the efforts of advocates from these communities to bring about changes in housing policies and practices to address discrimination.

Nevertheless, the limited data available from the University of Toronto indicates that there has been an increase in household income levels since the 1970s. Unfortunately, individuals living in low-income neighbourhoods still earn incomes that are below the average.

Even in neighbourhoods where income levels rise, there tends to be a decrease in the percentage of immigrants residing there. Consequently, the likelihood of residents in these neighbourhoods being people of colour also decreases significantly due to their economic state and discrimination.

While Canada’s black population and dark-skinned immigrants can challenge unfair housing requirements and racism due to Canada’s housing rights and the country’s anti-discrimination policies, many do not.

One reason is the hassle associated with filing a complaint and going through the necessary processes before emerging victorious. By that time, money and time have been spent, which isn’t something someone with limited time to find housing desires.

Another reason many African Canadians don’t challenge unfair housing requirements because some are unaware of Canada’s housing rights. Others don’t have the connection to community advocates to help find better housing in their desired neighbourhood.

Ultimately, the deliberate rejection of people of colour from acquiring housing in Canada is an act of pure racism and discrimination developed by unhealthy stereotypes of the black community. Such situations push these desperate individuals to low-income areas since Landlords raise the already high housing cost beyond the financial capacity of black renters.

Such acts of racism require additional efforts from the Canadian Government to implement a system to report discrimination regarding housing with quick resolution. Further action is needed to reform landlords to service people of colour according to the standard for Landlords, irrespective of what stereotypes they believe.

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Real eState

Why Mark Wahlberg and the ‘CSI’ Creator Are Buying Into Vegas’ Luxury Real Estate Boom – Hollywood Reporter

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Average price of three-bed semi passes €300,000 – REA – RTE.ie

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