Grant Cardone Forecasts Supply Imbalance As Rent Growth Flatlines, Creates Boon For Investors

U.S. apartment rent growth has plateaued, remaining stagnant since last August, according to a May 6 post on X by real estate mogul Grant Cardone.

Cardone, shared a RealPage Market Analytics graph, titled U.S. Apartment Rent Growth Stabilizes at Zero, showing rent growth has been flat since last August.

"This graph of flat rents will stop new construction and create MASSIVE supply problem & benefit real estate investors with 25-30% rent growth starting in 2026-28," Cardone posted.

In another recent post, Cardone predicted that his investors will see a return on their investments in his company's real estate portfolio in the next 10 years as the gap between the cost of buying a home versus renting is at its highest in 50 years. He predicts rents will average $2,800 per month by 2034.

Don't Miss:

• Only 0.2% of single-family rentals make this platform's rigorous cut. You can co-invest in them with Jeff Bezos and other notable investors for only $100.

Research from other real estate analytics firms is consistent with the chart Cardone posted. The U.S. average asking rent rose $8 to $1,721 in March, up 0.9% year over year — the largest gain in 20 months, according to a recent Yardi Matrix report. Rent for single-family homes rose 1.2% year over year through March to $2,144.

"Multifamily's March performance demonstrates resilience in the face of challenges," according to the Yardi Matrix report. "Demand remains healthy as the economy continues to churn out jobs, with household growth boosted by strong wage growth and immigration."

Although Yardi Matrix said one month of data is insufficient to indicate a trend, the increase is encouraging because it's in line with the 0.6% average for March and the first quarter in the five years leading up to 2020.

Top 10 Markets For Year-Over-Year Rent Growth

Source: Yardi Matrix

Northeast and Midwest markets, led by New York City, continued to outperform the nation, while Austin & Texas remained the weakest performers in rent growth, declining 5.9%.

Although rents have remained flat, Yardi Matrix said distress has not hit the market because borrowers are extending their loans. In Yardi Matrix's database of 58,000 multifamily loans totaling $1.1 trillion, $150 million loans on 6,800 properties are set to mature by the end of 2025, and $525 billion will mature by the end of 2029.

Read Next:

• Want to Create a Passive Income Stream? These High-Yield Real Estate Notes Might Be Your Holy Grail
• Dara Khosrowshahi-Backed Startup Lets You Become a Landlord with $100.