Jonathan Miller, founder and CEO of Miller Samuel, discusses the state of real estate, the impact of high mortgage rates on sales and inventory, challenges of commuting and working from home, migration trends during the pandemic, the impact of climate change on property values, and shares favorite apartments and experiences in Manhattan.
The pandemic has led to a re-evaluation of living locations, prompting young people to move to different cities or states.
Converting unused office spaces into residential areas is challenging due to high costs and floor plate issues.
The COVID-19 pandemic has caused a shift in migration patterns, with people moving away from densely populated cities to suburban or rural areas.
The appraisal industry faces challenges regarding diversity and racial bias, highlighting the need for stronger actions and a more representative workforce.
Deep dives
AI and the Importance of Data Verification
AI has the potential to generate solutions, but if it's using unverified data, it can also generate problems. It is crucial for businesses to ensure they have the right AI tailored to their specific needs.
The Changing Dynamics of Real Estate Market
The real estate market has experienced significant shifts due to the pandemic. The work-from-home trend has led to a re-evaluation of living locations and has prompted young people to move to different cities or states.
The Challenges of Office Space Conversion
Converting unused office spaces into residential areas is not as straightforward as it may seem. The high cost of conversions and challenges with floor plates make it difficult to repurpose these spaces.
The Effects of Pandemic on Urban Areas
The pandemic forced a rethinking of urban areas and their functionalities. Migration patterns have changed, with people moving away from densely populated cities and seeking more suburban or rural locations.
The Impact of High-Tax States and Work-From-Home on Real Estate
The podcast episode explores the impact of high-tax states on real estate, particularly in the context of work-from-home arrangements. Contrary to expectations, the enforcement of a law in 2018 that limited state and local tax deductions did not lead to a significant exodus of residents from high-tax blue states like New York. However, the COVID-19 pandemic played a major role in stimulating migration as people looked for more affordable living options. The focus then shifts to Florida and its evolving real estate market, which is experiencing a surge in high-end transactions across multiple cities, indicating a broader discovery of the state as a year-round living destination. The episode also touches on the potential impact of climate change on property values and the challenges faced by the appraisal industry in maintaining diversity and addressing racial bias.
The Challenges Faced by the Appraisal Industry
The podcast episode delves into the challenges faced by the appraisal industry, particularly the lack of diversity and the prevalence of racial bias. It highlights the role of the Appraisal Foundation in maintaining industry standards and the need for stronger actions to address racial bias in appraisals. The episode also discusses the impact of changes in the real estate market, such as the increased frequency and scale of climate-related disasters, on the cost of homeownership and insurance availability. It emphasizes the importance of accurate appraisals and the need for a more diverse and representative industry.
Insights on the Real Estate Market and Advice for New Graduates
The podcast episode concludes with insights on the current state of the real estate market and advice for recent college graduates interested in pursuing careers in real estate or data analytics. It emphasizes the importance of considering appearance in virtual interviews and the challenges posed by remote work and Zoom fatigue. The episode also encourages early investment in real estate and highlights the potential benefits of purchasing property at a younger age. The host reflects on what he wishes he had known about the real estate market when he first started his career and discusses the experiences of his own children in navigating the real estate industry.
Bloomberg Radio host Barry Ritholtz speaks with Jonathan Miller. He's the founder and CEO of Miller Samuel, a real estate appraisal & consulting firm founded in 1986. They discuss the current environment for US housing, mortgage rates, and his favorite New York City penthouse apartment.
