Grant Cardone Predicts Housing Market Shifts and Rental Price Explosion by 2026
Real estate mogul Grant Cardone has recently shed light on crucial shifts in the housing market that are set to impact prospective home buyers and investors. On April 30, Cardone highlighted a significant 20.8% decline in apartment starts, signaling a halt in multifamily construction projects due to the high cost of debt. This pause in construction projects is expected to lead to a shortage of homes and a subsequent surge in rental prices by 2026.
The rising costs of borrowing have made debt more expensive for developers, prompting them to scale back on new construction projects, especially in the multifamily sector. As a result, the supply of rental properties is projected to decrease while demand remains steady or increases, ultimately causing a sharp rise in rental prices in the coming years.
Cardone anticipates a temporary dip in rents in 2025, offering a potential relief for renters. However, he advises real estate investors to look beyond this temporary downturn as he foresees a rapid rebound and subsequent increases in rent prices. This cyclical pattern presents a strategic opportunity for investors to strengthen their portfolios before the expected surge.
Amid these market fluctuations, new listings have increased by 13% since 2023, while home sales have dropped significantly by 33% from 2022 levels. The current administration’s mortgage rates exceeding 7% have created a challenging environment for new homebuyers relying on financing.
Cardone criticizes the federal response to interest rates and inflation, arguing that these measures have disproportionately impacted middle-class families, favoring cash buyers like himself. He predicts favorable deals for individuals who can purchase homes outright without the need for mortgage financing.
Beyond real estate, Cardone’s critique extends to broader economic policies, suggesting that without significant reforms such as reducing government spending, lowering taxes, and reevaluating financial aid to other countries, the housing issues in the U.S. will worsen, leading to an increase in renters over homeowners.
With a portfolio of $5 billion in real estate investments, Cardone remains a staunch advocate for real estate as a fundamental asset class. He believes that real estate offers value that can stabilize and grow wealth, emphasizing that “The real measure of your wealth is how much you’d be worth if you lost all your money.” Through his insights, Cardone navigates current market conditions and sparks a broader conversation on wealth and investment in real estate as a long-term strategy, pointing towards a potentially volatile yet lucrative future in real estate investment for those who can navigate market trends, economic policies, and investment timing.
