Why Grant Cardone Thinks Buying a Home Is the Worst Investment—and What He Recommends Instead

For decades, owning a home has symbolized the American dream: financial success, independence, and long-term security. But real estate mogul Grant Cardone isn’t buying into that idea literally or figuratively.

In fact, Cardone believes homeownership might be one of the worst financial decisions Americans can make.

“You’d Have to Be Crazy”

On his YouTube channel and across his social media platforms, Cardone has been very vocal about his stance. “The average mortgage today is double the rent in America,” he said in a recent video. In an Instagram post, he went even further: “Buying a home without a doubt is the worst investment people can make, yet it’s also the most common one.”

His reasoning is rooted in economics and opportunity cost. Cardone argues that people sink hundreds of thousands of dollars into a primary residence that not only ties up capital but also delivers poor returns compared to other investment opportunities.

The Numbers Don’t Lie

Cardone points out that a home worth $576,000 today would need to sell for $1.2 million in a decade just to break even once you factor in inflation, maintenance, taxes, and other costs. “You’re not going to sell it for that,” he said. In his eyes, that’s “dead money” capital tied up in an asset that doesn’t generate income and has limited upside.

So, if homeownership isn’t the path to wealth, what is?

Where to Invest Instead: Real Estate Without the Hassle

Cardone champions real estate investment, but not the kind that involves mowing your own lawn or fixing a broken pipe at 3 AM. He encourages people to invest in real estate vehicles that offer returns without the headaches of traditional homeownership.

1. Crowdfunded Real Estate Platforms

With platforms like Fundrise or RealtyMogul, you can invest in real estate with as little as a few hundred dollars. These platforms pool money from multiple investors to buy, manage, and profit from residential or commercial properties.

2. REITs (Real Estate Investment Trusts)

A REIT allows investors to buy shares in real estate portfolios that receive income from properties like apartments, office buildings, or shopping malls. These trusts typically pay high dividends and are a solid choice for passive income seekers.

Companies like DLP Capital make REIT investing accessible. They focus on income-producing housing, particularly in areas where housing demand is high. This not only supports communities but also provides potential annual returns of up to 13%.

3. Rental Property Shares

If you want a slice of the rental market without buying an entire home, companies like Arrived let you invest in rental properties. Backed by names like Jeff Bezos, these platforms allow everyday investors to purchase shares of single-family homes or vacation rentals for as little as $100. You collect dividends from rent income—without worrying about tenants or toilets.

4. Necessity-Based Commercial Real Estate

This type of investment includes assets like grocery stores, pharmacies, and other businesses people rely on regardless of the economy. First National Realty Partners (FNRP) specializes in these properties, partnering with household brands such as Kroger and Whole Foods. Accredited investors can passively earn income from these reliable, high-traffic commercial hubs.

Final Thoughts

Grant Cardone isn’t just throwing out hot takes he’s offering a blueprint for how Americans can rethink their financial future. His message is clear: don’t tie up your money in a liability disguised as an asset. Instead, leverage smarter, income-generating investments that grow your wealth without tying you down.

While owning a home can bring stability and emotional satisfaction, if your primary goal is financial growth, you might want to take a page out of Cardone’s playbook and explore real estate from an investor’s angle not a homeowner’s.