Stephen Ross, the billionaire owner of the Miami Dolphins, has been in the news lately because of his support for President Donald Trump, who he believes has done much to boost the U.S. economy.
Still, Ross — who made much of his own fortune in real estate development — noted in a recently released interview with Yahoo Finance that a housing downturn could be imminent when asked if we’re 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 is primarily responsible for the polarizing Hudson Yards development on Manhattan’s West Side, made his comments in a conversation that aired on Yahoo Finance in an episode of “Influencers with Andy Serwer,” a weekly interview series with leaders in business, politics, and entertainment.
Ross noted that the housing slowdown would come amid an inevitable broader downturn in the economy. “Things don’t go straight up, so you know at some point, we’re at a recession,” he said.
To be sure, lower interest rates may be giving the housing market a temporary boost. But the housing market still faces a number of longer term problems, including a lack of adequate inventory due to a construction labor shortage.
While the supply of luxury housing recently increased, according to Redfin, a deepening housing crisis has left inadequate middle- or low-income housing stock to support the amount of people interested in living in coastal cities in particular.
Politicians on both sides of the aisle agree that there is a housing shortage in the United States. A debate is underway about whether more deregulation could help build housing that can accommodate more units.
And a gulf exists about whether the government should step in to provide more affordable housing. According to Ross, a potential solution for the problem may 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.”
Calder McHugh is an Associate Editor at Yahoo Finance. Follow him on Twitter: @Calder_McHugh.