Grant Cardone on the Future of Real Estate Under a Harris-Walz Administration
In the ever-evolving landscape of American politics and economics, few voices resonate as loudly in the real estate sector as that of Grant Cardone, CEO of Cardone Capital. Known for his outspoken views and extensive experience in real estate investment, Cardone recently shared his insights on the economic plans of presidential candidates, particularly focusing on Vice President Kamala Harris and her proposals for addressing the affordable housing crisis.
The Economic Landscape and Corporate Tax Rates
As the 2024 presidential election approaches, candidates are unveiling their economic strategies, with corporate tax rates being a pivotal topic. Cardone, a staunch advocate for business growth, argues that high corporate taxes stifle investment and innovation. He emphasizes that a favorable tax environment is crucial for real estate development and job creation, which are essential for a thriving economy.
Harris’ Housing Plans: A Critical Analysis
Cardone’s critique of Harris’ housing initiatives is sharp and unyielding. He asserts that her proposals, including a significant expansion of down payment assistance for first-time homebuyers, reflect a fundamental misunderstanding of the housing market. Harris has proposed a plan to provide $25,000 in down payment assistance to first-time buyers, aiming to help over four million people secure homes during her potential presidency. While this initiative is well-intentioned, Cardone warns that it could inadvertently inflate home prices rather than alleviate affordability issues.
"Kamala does not understand housing," Cardone stated emphatically during his appearance on Fox Business’ "Mornings with Maria." He believes that the proposed assistance will simply be added to the price of homes, negating any real benefit for buyers. "The $25,000 first-time buyers credit will actually inflate housing. It will not deflate housing," he explained, highlighting a critical flaw in the plan.
The Housing Shortage Dilemma
Harris has also pledged to build three million new housing units within her first term, a goal Cardone finds unrealistic given the current housing shortage of 4.2 million homes in the U.S. "Who are the 1 million that don’t get the house?" he questioned, pointing out the impracticality of her ambitious construction targets. Cardone’s skepticism is rooted in the reality that the housing market is not only about quantity but also about quality and accessibility.
Interest Rates and Market Dynamics
Another crucial factor influencing the housing market is interest rates. Cardone noted that the recent decline in the 30-year fixed mortgage rate, which fell to 5.99%, is a positive development but still not low enough to stimulate significant market activity. He argues that for real change to occur, interest rates need to drop to 4% or lower. "As long as rates are hanging out in the 6.5% range, 70% of all existing mortgages in this country are under 4%," he pointed out. This discrepancy creates a challenging environment for potential buyers, who may be hesitant to enter the market when existing homeowners benefit from lower rates.
The Bigger Picture: Economic Literacy and Voter Trust
Cardone’s critique extends beyond housing policy to a broader commentary on economic literacy among political leaders. He suggested that Harris’ proposals may indicate either a lack of understanding or a belief that voters are uninformed. "Kamala Harris is either financially illiterate, incompetent, or she believes that her voters are," he remarked, emphasizing the need for informed leadership in addressing complex economic issues.
Conclusion: A Call for Real Solutions
As the political landscape continues to shift, the future of real estate in America hangs in the balance. Grant Cardone’s insights serve as a reminder of the complexities involved in housing policy and the importance of sound economic principles. With the stakes higher than ever, voters and policymakers alike must engage in informed discussions about the best paths forward for the housing market and the economy as a whole.
In a time when the American dream of homeownership seems increasingly out of reach for many, the need for effective, realistic solutions is paramount. Whether through tax reform, interest rate adjustments, or innovative housing policies, the focus must remain on creating a sustainable and accessible housing market for all Americans.