Travis Kalanick, former Uber CEO and CEO of CloudKitchens, issued a stark warning regarding New York City's proposed tax on second homes and pied-à-terre properties. Kalanick predicts the new tax will significantly reduce demand, leading to a market crash and negatively impacting the city's economy.
He drew parallels to London's real estate market, which he stated has suffered due to high taxes and land banking, resulting in a collapse at the high end. Kalanick argued that such policies deter potential buyers and that the math no longer works for high-value investments in New York.
Kalanick emphasized the importance of increased construction to stabilize housing prices and rents, stating that allowing more building to meet demand is crucial. He cautioned that cities imposing arbitrary taxes risk losing investment from wealthy individuals, who, he noted, subsidize urban development projects through their investments.
"Real estate in blue states is becoming increasingly risky for wealthy individuals," Kalanick stated, attributing this to taxation policies and what he described as a "political class" that may alienate investors. He also noted that high transaction costs in real estate are now discouraging market activities like house flipping.
Separately, Kalanick commented on the anticipated release of OpenAI's new model, Spud, predicting a 75% chance of its release next week.