Billionaire real estate investor Jeff Greene is sounding the alarm for the housing sector, predicting that it is on the verge of a major downturn. Greene believes that Americans’ savings will be depleted due to the rising cost of living, leading to a significant impact on the industry as a whole.
During an appearance on CNBC’s Squawk Box, Greene stated that the trillions of dollars injected into the US economy during the COVID-19 pandemic are beginning to dwindle, and the consequences will be felt across all aspects of real estate. He likened the current state of affairs to being in the “first inning” of a larger crisis, where the demand for retail, office spaces, and apartments will all suffer.
While wages experienced growth during the pandemic, Greene emphasized that this was mainly due to the influx of money into the economy. If that stimulus diminishes, unemployment rates will rise and people will have less money to spend on housing expenses.
Greene pointed out that the housing market in Florida, which saw a surge in demand during the pandemic, is now losing momentum. The movement prompted by the health emergency has dwindled, and the demand from individuals planning to retire to Florida in the coming years has already been exhausted.
The real estate mogul, known for successfully navigating the housing bubble of 2008 and making substantial profits, urged investors to turn their attention to commercial properties. He believes that there will be “extraordinary opportunities to buy” in the next 12 to 24 months.
In conclusion, Jeff Greene’s warning about an imminent reckoning in the housing sector highlights the potential consequences of the disappearing savings and rising cost of living for Americans. As the government stimulus fades out, it remains to be seen how the housing market will be affected and what opportunities may arise for investors in the commercial real estate space.
Sources:
– CNBC’s Squawk Box interview with Jeff Greene, June 2023