WATCH: Blackstone’s Gray says the burbs will soon have their moment

In real estate, the past decade has been all about the urban revival, which led to rising rents in many cities and vacancies in suburbia.

The Blackstone Group’s Jonathan Gray argued that millennials will continue to flock to the cities. But he also said that some suburban towns may attract more young residents by becoming more city-like.

“There are places in suburban America where you’re around a transportation node, where you’ll see more density,” he said. “I think you’ll see zoning for taller buildings in those areas” creating neighborhoods where people can shop and bike around, he added.

“As always, there’s a ying and a yang here. Right now urban America is doing quite well. I think you’ll see more densification of the suburbs over time.”

Gray isn’t the only real estate investor to see potential in suburbia. RXR Realty, for example, has been investing heavily in developments near public transit outside of New York City. [Yahoo Finance] — Konrad Putzier