What will be the results of to-day’s election? Chances are we will see a distinct shift to the right nationally, although locally the shift will be less pronounced we imagine. How will this all affect New York real estate? Here are our predictions:
1) GREEN BUILDING: This area will be less supported by the Federal government, although we think the movement is so strong already, private enterprise will trump government and the shift towards more self-sustaining green construction will continue and escalate regardless. Private enterprise is ruled by profits, and green building, while expensive at first, may just be cost-effective over the longterm. And the New York luxury buyer is beginning to demand it.
2) TAXES: A lesser tax burden on New Yorkers will only fuel more spending. That cannot hurt. If (IF) corporations feel they will have a lower tax burden, they may actually start spending the trillions of dollars they have stashed away…..that could fuel jobs, corporate profits, and corporate spending on equipment and infrastructure. More jobs means fewer people reliant on the State’s coffers….more money in Albany means less stress on the State to further raise taxes (we pray!). All of this adds up to more money for real estate.
3) INTEREST RATES: With tighter fiscal policies, it may be possible that we will see the end of the very low interest rates, especially if any signs of inflation appear.
So what do you think will happen after this election?