One real estate investor is witnessing the beginning of the industry’s most significant correction he has ever seen.
“I must emphasize that we are on the verge of the most remarkable real estate correction in my lifetime,” private equity fund manager Grant Cardone stated during his appearance on “FOX & Friends” on Thursday, discussing the state of the industry.
“This correction will present a tremendous opportunity for ordinary individuals to acquire prestigious real estate from large institutions. This is an unprecedented occurrence in our country,” Cardone explained.
“It will reach extraordinary levels,” he added.
Despite Cardone’s assertion that the industry is venturing into uncharted territory, the current housing market presents substantial challenges for both buyers and sellers due to elevated interest rates and housing costs.
Cardone emphasized that owning a home has become unaffordable due to the Federal Reserve’s interest rate hikes, which he believes have single-handedly killed the housing market. He criticized Fed Chairman Jerome Powell for failing to control inflation and accused him of creating and subsequently halting the housing industry.
Moody’s Analytics discovered that during the third quarter, the rent-to-income ratio (RTI) in the United States experienced a marginal decrease of 0.5%, ultimately settling at 30%. This percentage represents the threshold at which individuals are classified as rent-burdened. Renters are deemed “burdened” when their rent payments account for 30% or higher of their gross income before taxes.
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