Grant Cardone Warns of ‘Biggest Real Estate Correction’ of His Life — But Sees ‘Tremendous Opportunity’ for Some

Prolific real estate investor Grant Cardone is sounding the alarm on significant changes within the real estate industry. In a recent conversation on Fox Business with host Charles Payne, Cardone shared a grim forecast for the real estate market, predicting an impending downturn that could reshape the landscape for investors and homeowners alike.

A Stark Prediction

“We’re going to have the biggest real estate correction we’ve ever had here in the next 12 months,” Cardone stated emphatically. He elaborated that this correction would be unprecedented, particularly affecting Generation Z, who may find themselves permanently priced out of the real estate market. The implications of such a downturn are profound, reminiscent of the Great Recession in the late 2000s, when millions of Americans defaulted on their mortgages and lost their homes. However, Cardone believes this time the impact will be more focused on larger developments rather than single-family homes.

Generational Wealth Redistribution

Traditionally, single-family homes have been viewed as the most accessible entry point into real estate investment for the average American. In contrast, multi-unit properties have often been out of reach for many. However, Cardone argues that this dynamic is shifting.

“You have major institutions that are releasing assets back to regular, ordinary, everyday people,” he explained. “Institutions are having to let those properties go because their debt is due.” This presents a unique investment opportunity for regular Americans, particularly younger generations like Gen Z, who may find themselves in a position to acquire properties that were previously unattainable.

Cardone describes this phenomenon as “true generational wealth redistribution,” suggesting that the upcoming correction could allow a new wave of investors to enter the market and build wealth through real estate.

‘I Guarantee It’

Known for his bold statements, Cardone has previously claimed that buying a home is “the worst investment people can make.” Instead, he advocates for rental properties, viewing them as a more robust investment option. Despite anticipating a significant market correction, Cardone remains optimistic about the future of real estate as an investment class.

“I’ll make a prediction right now… real estate will be the number one [investment] category by the year 2026, for all age groups. I guarantee it,” he asserted. He outlined several advantages of real estate investment, including its ability to leverage capital, protect against inflation, benefit from rent increases, and provide essential cash flow.

The Case for Real Estate

Cardone’s confidence in real estate stems from its historical performance as an effective hedge against inflation. As the costs of raw materials and labor rise, the price of new properties increases, which can drive up the value of existing real estate. Well-chosen properties not only offer potential for price appreciation but also generate a steady stream of rental income. Furthermore, rental rates typically rise with inflation, enhancing the investment’s value over time.

The best part is that you don’t need to be a real estate mogul like Cardone to capitalize on these opportunities. Today, various real estate investment trusts (REITs) and crowdfunding platforms allow everyday Americans to earn rental income without the burdens of traditional property management.

Conclusion

While the next year may present challenges for single-family homeowners, it could also unveil new investment opportunities just a few blocks away. As Grant Cardone warns of a significant correction in the real estate market, he simultaneously highlights the potential for a new generation of investors to seize the moment and build wealth through real estate.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.