International investor Barry Sternlicht advised CNBC on Tuesday he believes lots of persons are transferring away from main U.S. cities in favor of the suburbs. “There’s tons of of hundreds of individuals in search of suburban properties, and I’d say it isn’t as pushed by the Covid scenario as it’s security and legislation and order, and that’s now pervasive throughout the massive cities of the USA, sadly,” Sternlicht mentioned on “Squawk Field,” referring to latest protests which have typically turned violent. Tax coverage is one other power that might be taking part in into the will for prosperous folks to relocate from massive cities corresponding to New York, mentioned Sternlicht, founder and CEO of funding agency Starwood Capital, which focuses on areas corresponding to actual property and vitality infrastructure. Though cities may be going through declining revenues on account of the coronavirus pandemic, Sternlicht mentioned, “should you tax the rich much more in New York Metropolis … and so they depart, then the social web must be absorbed by the remaining residents and you’ll power them to depart.” “The Biden tax plan, which I am completely happy to pay extra taxes, however I do not assume this improve within the capital features price is a good suggestion for funding in our nation, which we have to do,” he mentioned. And if that passes and the the restrict on state and native tax deductions shouldn’t be repealed, “you are speaking 60% plus taxes on the rich in New York Metropolis, and they’ll depart.””They’re leaving now. I’ve change into an actual property dealer for Miami,” added Sternlicht, who agency is headquartered in Miami Seashore. “I maintain sending pals down and exhibiting them homes they will purchase, and so they’re shopping for.”Regardless of issues about increased taxes sending the wealthy south, Sternlicht mentioned he would in all probability vote for Democrat Joe Biden for the White Home as a substitute of President Donald Trump. “The nation must heal, and I believe we have to get again collectively, and I do not assume we will try this with the rhetoric from the fitting,” mentioned Sternlicht, who earlier this yr agreed with Trump’s push to reopen the economic system and supported Trump’s pre-coronavirus business-friendly agenda.Whereas the coronavirus additionally afflicts suburban areas, the way forward for U.S. cities has been a spotlight for the reason that introduction of the coronavirus pandemic, significantly since New York Metropolis had been an early epicenter of the well being disaster.”This is likely one of the best strikes to the suburbs from city areas for the reason that 1950s or the ’60s,” “Shark Tank” investor Robert Herjavec mentioned final month on CNBC. “I lately moved out of Los Angeles right into a suburban space, and I can let you know on a really private stage, my space is on hearth.”Sternlicht’s feedback on security issues and tax coverage add to the dialog about geographic developments within the U.S. Nonetheless, some folks be aware that main metropolitan areas within the U.S. had already been seeing their progress gradual previous to this yr and, they are saying, developments that had already been underway earlier than the outbreak may have solely been accelerated. “What the pandemic has accomplished is taken household formulation strikes that may have been revamped the subsequent one, two, three, 4, 5 years and compressed them into one, two, three months,” Richard Florida, a College of Toronto professor who research cities, mentioned final month on CNBC.