Grant Cardone Explains Why We Are Becoming A Renter Nation: 'Many People Don't Want To Commit To 30 Years. They're On The Move.'
Real estate investor Grant Cardone has navigated multiple economic downturns and can spot trends before most investors notice. He's been highlighting the growing trend of renting over owning property and explained some of the factors that have led to this change.
"Many people don't want to commit to 30 years. They're on the move," Cardone said.
Cardone mentioned housing prices, shortcomings of the Biden administration, and other details when painting the picture of America becoming a renter nation.
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A Rolling Recession
Cardone believes we were in a recession during the Biden administration that wasn’t properly covered because the definition of a recession was changed. He stated that the U.S. experienced multiple back-to-back quarters of declining GDP, and job numbers only looked decent because 40%-45% of all added jobs were government jobs during the Biden administration.
Cardone mentioned this context since people are more likely to rent than buy during recessions. Mortgages become less accessible during recessions, and people don't have the money to keep up with living costs and save up for a down payment.
He also stated that some people are waiting for housing prices to go down. That's a common strategy during economic contractions, as people hope to buy at a lower price in a few months. Some potential home buyers have no problem with waiting for more affordable prices, and that has resulted in higher demand for the rental market.
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More People Are Living Mobile Lifestyles
Cardone also mentioned that people are being more mobile instead of sticking to one place. This lifestyle makes it easier for people to get up and move to another city. Cardone is a fan of moving every once in a while. He moved from Louisiana to San Diego before moving to Los Angeles and finally Miami, where he currently resides.
Cardone believes you should relocate if you get too comfortable and seem to know everyone in the area. It seems like more people are following up on that advice by renting instead of buying.
Cardone specifically mentioned California and said that less than 16% of Californians own a home. He said that many of them cannot afford it due to high housing costs and the difficulty of qualifying for a mortgage. Getting a mortgage becomes even more difficult when houses are valued at millions of dollars.
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