Anyone 'under 30 years old should not even consider buying a home,' real estate mogul says
Buying a house should no longer be the “American dream” for young people, in the opinion of Grant Cardone.
In a recent post on X, the real estate mogul and investment guru argued that, given the current state of the property market, those under 30 should instead look to rent.
Pointing out the costs of property taxes, higher interest rates on mortgages, maintenance, and other factors such as homeowners association fees, Cardone stated: “Anyone under 30 years old should not even consider buying a home at this time”.
“Buying a house is no longer the ‘American dream,’” he added.
Cardone’s view is based on the assumption that new homeowners pay up to $4,200 a month on a typical home costing around $436,000, when taking all costs into account.
This is more than double the average asking rent of around $2,000 a month.
As of April, the median sales price of new homes was $433,500, according to the U.S. Census Bureau. That'sclose to the average sales figure given Cardone based his estimate on.
The investment pundit and author of books including “How to Create Wealth Investing in Real Estate” previously made headlines last year for claiming ”America will become a renter nation.”
In a December TikTok video, he argued: “You will rent your cars, you will rent where you live, you might even rent your clothes in the future.“ A mortgage is just a fancy way to say you own some sh-t that you don’t own, he added.
House prices are the biggest concern among the young
Cardone’s comments come as rising housing costs take center stage during this year's election, especially among younger voters.
As Creditnews previously reported, more than nine in 10 (91%) adult Gen Zers cited housing affordability as their key concern when it comes to picking which presidential candidate they will vote for in November.
This concern outweighs all other prominent issues such as the economy, abortion rights, gun control, and foreign conflicts. Only 26% of adult Gen Zers are currently a homeowner, compared to 55% of millennials and 72% of Gen Xers.
It follows a relentless upward movement in housing costs, with the median home sale price reaching its highest ever level in April.
The median home in the country sold for $433,558 last month, up 6.2% from a year ago, despite slowing sales that have been stagnating since the pandemic boom.
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