Grant Cardone Exposes Housing Cost Surge Under Biden — 'Mortgages Have Doubled To The Highest Level In History & Double The Cost To Rent'

Real estate investor Grant Cardone highlighted a striking rise in mortgage rates under President Joe Biden's administration in a May 3 post on X. 

"Under Joe Biden's administration, mortgages have doubled to the highest level in history & double the cost to rent," Cardone posted. "April 2020: $1,480. April 2024: $2,890 (record high). Will you buy a house this year?" 

This and prior posts from Cardone reflect his significant concern over the affordability of buying a house in the current economic climate.

Mortgage rates have risen dramatically, with the average 30-year fixed-rate loan recently reaching 7.39%, according to Bankrate. The increase is part of a broader strategy by the Federal Reserve to combat inflation by keeping interest rates elevated, which makes borrowing more expensive for businesses and consumers. This policy aims to temper demand for goods and services, potentially slowing the pace of price increases across the economy.

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The debate over whether to rent or buy is more relevant than ever. A new Bankrate analysis suggests that renting is more cost-effective than buying in most major U.S. cities. The typical home now costs nearly 37% more to buy than to rent monthly. Factors contributing to this include high home prices, elevated mortgage rates and low housing inventory, which collectively create formidable barriers for many aspiring homeowners.

Despite these financial challenges, homeownership remains a central component of the American Dream, with 78% of Americans viewing it as such, according to Bankrate's Home Affordability Report. Affordability remains a major hurdle, with a significant proportion of nonhomeowners citing lack of income, high home prices and the inability to afford a down payment and closing costs as their main barriers to purchasing a home.

As a seasoned real estate investor, Cardone's insights into the housing market highlight the nuanced challenges facing both renters and potential homebuyers in today's economy. His observations on X offer perspective on the impacts of policy and economic conditions on real estate, underlining the complex interplay between housing affordability, monetary policy and personal financial decision-making.

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