Grant Cardone Dispels the 'American Dream' of Homeownership, Citing Mortgage Payments As 'Double The Rent' – Here's His Surprising Alternative

Grant Cardone, the well-known real estate mogul, is rewriting a long-standing American tradition. According to him, homeownership, often seen as the cornerstone of the American Dream, is more of a financial nightmare than a dream come true.

In a video posted on his YouTube channel, Cardone didn't hold back. "No matter how much you guys complain about rent," he said, "it is still half what it costs to live in that piece of s – house that you call the American dream."

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 He went on to call buying a house a “terrible investment.” His bold claim isn't entirely out of left field, though. Research backs up his stance, with a study by Bankrate revealing that owning a home is, on average, 37% more expensive than renting across the 50 largest metro areas in the U.S. In simple terms, renting costs less than buying anywhere in the country.

Cardone's core message is this: forget the house and put your money to better use instead. He suggests investing in stocks or other assets that could offer better returns. Looking at history, he's got a point. From 1992 to 2024, the U.S. housing market saw an annual return of 6.6%, according to data from CEIC. 

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The S&P 500 outpaced it with an average annual return of 9% in nominal terms. That's without factoring in dividends, which, when reinvested, push that figure to 10.24%. On the other hand, homeowners have to deal with mortgage payments, property taxes and maintenance costs – none of which generate cash flow. Meanwhile, stockholders get to enjoy dividends and capital appreciation.

Cardone also threw cryptocurrency into the mix. "Any cryptocurrency would have outperformed the housing market historically," he remarked. His favorite comparison was Bitcoin, which had a compounded annual growth rate of 105.21% over the past 12 years. Of course, not all cryptocurrencies are created equal. 

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Cardone acknowledged that some, like Dogecoin and tokens linked to scandals like FTX and LUNA, have tanked, leaving many investors burned. Crypto’s wild volatility makes it a tough pill for many, especially those accustomed to the more predictable – if slower – real estate market.

Interestingly, Cardone isn't completely anti-real estate. In his view, rental properties are where the money's at. "A rental property will always make more money than a house will," he stated confidently. 

Rental yields in the U.S. currently average 6.10%, according to GlobalPropertyGuide, making them attractive to investors. And it's not just residential rentals Cardone is fond of. He's a big advocate for commercial real estate as well – think shopping malls, office buildings and even farmland, all of which have the potential to offer higher returns than your average single-family home.

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