Grant Cardone says Americans under 30 ‘should not even consider’ buying a home. Here’s why he’s so against it — plus 3 alternative ways to invest in real estate

Grant Cardone says Americans under 30 ‘should not even consider’ buying a home. Here’s why he’s so against it — plus 3 alternative ways to invest in real estate

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Grant Cardone says Americans under 30 'should not even consider' buying a home. Here's why he's so against it — plus 3 alternative ways to invest in real estate

Grant Cardone says Americans under 30 ‘should not even consider’ buying a home. Here’s why he’s so against it — plus 3 alternative ways to invest in real estate

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Buying a house has long been considered an essential part of the American dream. Homeownership is a symbol of prosperity, stability and success. However, real estate mogul Grant Cardone argues that this notion no longer holds true.

“Anyone under 30 years old should not even consider buying a home at this time,” Cardone wrote in a recent post on X.

He noted that the average home now costs $436,000. He didn’t cite a source for this figure, but the median sale price of houses in the U.S. in the first quarter of 2024 was $420,800, per the U.S. Census Bureau.

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“The total annual outlay is $50,000 a year ($4200/mo),” he wrote. As a result, Cardone recommends that young people consider renting instead.

“You can rent for under $2,000 with no long term commitment, [no] down payment & keep your mobility,” he wrote, concluding that “Buying a house is no longer the ‘American dream.”

That being said, this doesn’t negate real estate’s income potential and diversifying and inflation-hedging properties.

And while the cost of homeownership can be substantial, there are now strategies to invest in real estate without purchasing a house for yourself. Here’s a look at three of them.

3. Invest in REITs

Real estate investment trusts, or REITs, are companies that own income-producing real estate like apartment buildings, shopping centers and office towers.

You can think of a REIT as a giant landlord: it owns a large number of properties, collects rent from the tenants, and passes at least 90% of its income to shareholders in the form of dividend payments. Many REITs are publicly traded, making them easy to invest in. But, private REITs can also be a lucrative real-estate opportunity through a platform like Fundrise.

Fundrise offers an accessible minimum investment amount of just $10 — one of the lowest available for private real estate. Fundrise’s eREITs are a clever way to diversify your portfolio and boost your income with the potential for quarterly dividends.

Simply sign up and answer a few questions about yourself and your investing goals. Fundrise will then suggest a portfolio best suited to your needs.

2. Invest on a crowdfunding platform

Crowdfunding has become a buzzword in recent years. It refers to the practice of funding a project by raising small amounts of money from a large number of people.

These days, there are also many crowdfunding investing platforms that allow you to own a percentage of physical real estate — from rental properties and commercial buildings to parcels of land.

Some crowdfunding platforms, like First National Realty Partners offers opportunities for accredited investors who want to make a larger investment with their necessity-based commercial real-estate deals.

FNRP’s team of experts vet every deal against a set of rigorous investment criteria, and since the properties are necessity-based, like grocery stores and other retail centers, they are more able to withstand economic uncertainty.

If you’re not an accredited investor, you can still get into the real estate game at a low cost with Arrived.

Arrived is a crowdfunding platform that allows investors to purchase shares of rental homes and vacation rentals for as little as $100, and without the headache of property management or the high price of homeownership.

Arrived properties are vetted for their income potential and appreciation, so you’ll know you’re giving your money the chance to grow in the hot residential real estate sector.

Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here’s how you can save yourself as much as $820 annually in minutes (it’s 100% free)

1. Invest in ETFs

Remember that picking the right REIT or crowdfunded deal requires plenty of due diligence. If you’re looking for an easier, more diversified way to invest in real estate, you can also consider exchange-traded funds (ETFs). An ETF is like a portfolio of stocks. And as the name suggests, ETFs trade on major exchanges, making them convenient to buy and sell.

Wealthfront is an investing platform that makes investing in ETFs all the more convenient by automating your investments.

To get started with Wealthfront, simply fill out a questionnaire about your investing goals, risk tolerance, and financial situation, and make a minimum investment of $500. From there, Wealthfront will automatically allocate assets and rebalance your portfolio accordingly.

If you want to take the self-directed trading route, you can open a brokerage account through E*Trade.

E*Trade is an investment platform from financial giant Morgan Stanley. Through their brokerage account, you can invest in ETFs and enjoy $0 commissions on online US-listed ETF trades. Opening an account takes just 10 minutes — you’ll gain access to timely research and analysis to support your investing choices.

Plus, if you open and fund a new brokerage account by July 31 using the code REWARD24 you can get up to $1,000 credited to your brokerage account.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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