Blackstone’s Gray: Trump win is a game changer for real estate
November 15, 2016 03:35PM | By Konrad Putzier | The Real Deal
The Blackstone Group’s real estate head Jonathan Gray thinks Donald Trump’s victory in last week’s election is a game changer for the real estate industry. But whether it’s a good or bad one remains to be seen. “I think it’s fair to say that the economic narrative has changed,” Gray said Tuesday at a conference hosted by Bank of America.
“It does appear like we’re going to have lower taxes, less regulation and probably more fiscal spending, particularly around infrastructure. All of that should be good for growth,” Gray said, adding that economic growth tends to increase income from real estate. But the flipside, according to Gray, is that the kind of debt-financed government spending spree Trump has hinted at could lead to higher inflation and higher interest rates.
Still, Gray said “the potential for higher growth certainly exists.” He argued that history shows real estate tends to do well during periods of high growth and rising interest rates.Go Back
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