Grant Cardone Says Americans Under 30 ‘Should Not Even Consider’ Buying a Home: Here’s Why

Buying a home has long been considered a cornerstone of the American dream—a symbol of prosperity, stability, and success. However, real estate mogul Grant Cardone has stirred the pot by asserting that this notion may no longer hold true, especially for younger Americans. In a recent post on X, Cardone boldly stated, “Anyone under 30 years old should not even consider buying a home at this time.” This provocative statement raises questions about the current state of the housing market and the financial implications of homeownership for millennials and Gen Z.

The Current Housing Market Landscape

Cardone’s warning comes against the backdrop of skyrocketing home prices. He cited an average home cost of $436,000, which aligns closely with the U.S. Census Bureau’s reported median sale price of $420,800 for the first quarter of 2024. With such high prices, Cardone argues that the total annual outlay for homeownership can reach around $50,000 a year, or approximately $4,200 a month. This figure includes mortgage payments, property taxes, maintenance, and other associated costs.

Given these staggering expenses, Cardone recommends that young people consider renting instead. “You can rent for under $2,000 with no long-term commitment, no down payment, and keep your mobility,” he explained. This perspective challenges the traditional view of homeownership as a necessary step toward financial stability and wealth accumulation.

The Shift in the American Dream

Cardone’s assertion that “buying a house is no longer the ‘American dream’” reflects a broader shift in societal values and economic realities. Many young Americans are prioritizing flexibility and experiences over the long-term commitment of homeownership. With the rise of remote work and the gig economy, the ability to relocate for job opportunities or lifestyle changes has become increasingly important.

However, this doesn’t mean that young people should shy away from real estate altogether. While the costs of homeownership may be prohibitive, there are alternative ways to invest in real estate that can provide financial benefits without the burdens of traditional homeownership.

Alternative Ways to Invest in Real Estate

1. Invest on a Crowdfunding Platform

Crowdfunding has emerged as a popular method for individuals to invest in real estate without the need for substantial capital. Various platforms allow you to own a percentage of physical properties, ranging from rental homes to commercial buildings.

For instance, First National Realty Partners offers opportunities for accredited investors to engage in necessity-based commercial real estate deals, such as grocery stores and retail centers. These properties tend to be more resilient during economic downturns.

If you’re not an accredited investor, platforms like Arrived allow you to purchase shares of rental homes and vacation rentals for as little as $100. This model enables you to invest in real estate without the headaches of property management or the high costs associated with homeownership.

2. Invest in a Private Real Estate Fund

Private equity real estate funds provide access to a diversified range of real estate investments, including residential, commercial, and real estate debt. This diversification helps mitigate risk by not tying your investment to the performance of a single property.

Fundrise is a notable platform that allows investors to participate in various real estate funds calibrated for consistent growth. With a minimum investment threshold of just $10, Fundrise democratizes access to real estate investing, enabling individuals to build a diversified portfolio without needing institutional-level capital.

3. Invest in ETFs

For those seeking a more straightforward and diversified approach to real estate investing, exchange-traded funds (ETFs) can be an excellent option. ETFs are collections of stocks that trade on major exchanges, making them easy to buy and sell.

Platforms like Wealthfront simplify the process of investing in ETFs by automating your investments. By filling out a questionnaire about your financial goals and risk tolerance, you can start investing with a minimum of $500. Wealthfront will then allocate assets and rebalance your portfolio, allowing you to benefit from the growth of the real estate sector without the complexities of direct property ownership.

Conclusion

Grant Cardone’s perspective on homeownership for Americans under 30 challenges traditional notions of the American dream. While the costs of buying a home can be daunting, young people can still participate in the real estate market through alternative investment strategies. Whether through crowdfunding platforms, private real estate funds, or ETFs, there are numerous avenues to explore that can provide financial growth and stability without the burdens of homeownership. As the landscape of real estate investing continues to evolve, it’s essential for young Americans to stay informed and consider all their options.

This article provides information only and should not be construed as financial advice. Always conduct thorough research and consult with a financial advisor before making investment decisions.