This week, we speak with Jonathan Miller, CEO and co-founder of Miller Samuel, a real estate appraisal and consulting firm. He is an Associate Professor in the Graduate School of Architecture and Planning at Columbia University. He also served on the mayor’s economic advisory panel and on the economic advisory board of the New York State Budget Division. His research and analysis reinforces the backbone of some larger real estate brokerage firms.
We discuss the pullback of real estate demand due to almost double the rate; The volume of communication has decreased, and the trend has been going on since March. The collapse of inventory is also responsible for the decline in capacity.
During most real estate recessions, sales activity immediately slows, as inventories increase. But prices take years to reflect new markets, awaiting seller capitalization. Miller hopes to see a quick adjustment due to the recent big runup in home equity.
He also explains why converting an urban office tower into a residential building is so challenging. Larger cities such as New York and San Francisco have a surplus of office buildings that run about 2/3 percent vacant, while there is a severe shortage of housing at most price points.
Here is a list of his favorite books; A transcript of our conversation is available here this week.
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Be sure to check out our Masters in Business next week with Perth Toll, the index provider and sponsor of the Freedom 100 Emerging Markets ETF, founder of the Life + Liberty Index. The first type of strategy uses the metrics of personal and economic independence as the primary cause of its investment process. Prior to the formation of the Life + Liberty Index, Perth was a personal wealth advisor to Fidelity Investments in Los Angeles and Houston, and lived and worked in Beijing and Hong Kong, where his observations led him to explore the relationship between freedom and the market.
Jonathan Miller’s favorite book
Fins: Harley Earl, The Rise of General Motors and Detroit Glory Day By William Knoedelseder
Subtraction By David Halberstam