Grant Cardone Proclaims His Short-Term Rental Skepticism Proved Correct — 'I Warned You To Avoid Short-Term Rentals'

Once all the rage, short-term rentals seem to have fallen out of favor with real estate investors as many communities impose more stringent regulations on the properties as they struggle with housing affordability issues.

Hawaii lawmakers want to phase out short-term rentals altogether, and Los Angeles, New York, Nashville, Tennessee and Bozeman, Montana are looking for ways to curb activity. In Michigan, a bill before the legislature would require people who rent their homes for more than 14 days per year to pay an additional 6% tax, register their rental with the state and pay additional fees if their rentals are listed on sites like VRBO or Airbnb.

Real estate mogul Grant Cardone is giving investors who didn't heed his warnings a big, "I told you so."

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In an April 27 post on X, Cardone shared a graphic showing 7,300 homes for sale in Cape Coral, Florida, which has more than double that number of short-term rentals at 17,200.

"I warned you to avoid short-term rentals," Cardone said. "Real estate is a long-term investment designed to create generational wealth, not a get-rich-quick vehicle."

In a 2019 post, Cardone called Airbnb "OK" but said it is not an "ideal long-term investment because it is not scalable."

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Although Cardone isn't a fan of short-term rental properties as an investment, the market continues to grow, reaching $64 billion in 2023, according to AirDNA, which found that there were 2.5 million available vacation rental listings and 785,000 individual hosts. Travelers stayed 207 million nights in vacation rentals in 2023.

Still, AirDNA notes that competition is stiff.

"New short-term rental owners should prepare to enter a cluttered marketplace and have a strategy to differentiate themselves," AirDNA advises on its website. "Existing short-term rental owners should look for ways to continually improve their listings and hosting style."

AirDNA predicts that short-term rentals will see a 10% growth in supply and demand this year and that the average occupancy rate will remain at about 55%.

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