Grant Cardone Points Finger At Biden For Soaring Rent Prices Amid Wage Stagnation

American paychecks have increased since the pandemic, but the gains haven't kept pace with rising rent prices, and real estate magnate Grant Cardone blames President Joe Biden rather than inflation.

Between 2019 and 2030, rents surged by 30% while wages rose by about 20%, Cardone wrote in a May 18 post on X. Despite the addition of 1.2 million new apartments nationwide — a 50-year high — rents have not declined. It is still cheaper to rent than to buy, with the monthly cost of owning a home nearly double that of renting in 21 metropolitan areas. Cardone has said that the gap between the cost of buying a home and renting is at its highest in 50 years.

"Who's to blame? The FED under Joe Biden administration," Cardone posted. "Sorry to all the Joe Biden defenders, but the buck stops with the president. It is the same FED but a different president."

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Cardone predicts the Federal Reserve will cut rates to avoid a potential banking crisis, citing consumer credit card debt, housing market stagnation, and declining mortgage applications as economic indicators that will force the Fed's hand.

Interest rates exceed 7.5%, meaning the monthly payment for a $417,000 mortgage is around $3,000 before adding insurance, private mortgage insurance, homeowners association fees, taxes, maintenance, and the opportunity cost of a down payment, bringing the total to $4,333. In contrast, the average rent is just under $2,000, although earlier this month, Cardone predicted that rents average $2,800 per month by 2034.

As a result, America will become a renter nation because investors are paying cash for homes while rates are high and renting the houses to people who can't afford the mortgage. Cardone predicts that when rates are low again, investors will finance the properties and continue renting them as rates continue to rise.

"The only fix to the housing problem is a government that rewards builders by reducing regulations and rewards buyers with tax benefits not penalties for investing," Cardone wrote. "I assure you smart money will continue to buy up the housing stock in this country and use it as the wealth-creating machine it has proven to be."

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