Grant Cardone: Here’s Why We’re in a Housing Supply Crisis in 2024
Written by
Gabrielle Olya
Edited by
Gary Dudak
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If you’re currently in the market for a home, you’ve likely run into the issue of limited inventory. That’s because we’re in the midst of a housing supply crisis that’s making it difficult for buyers to find their dream homes.
“We have a housing [supply] crisis,” Grant Cardone, private equity fund manager and real estate investor, told GOBankingRates. “We’re short 4 million homes in America, and we’re short another 40 million that nobody wants to live in.”
There’s an Undersupply of Desirable Homes and an Oversupply of Older Homes
Cardone — who will be hosting his Real Estate Summit 2024 in Hallandale Beach, Florida in March — explained that the majority of the homes that are on the market are places that buyers are not interested in.
“You don’t want to buy most of the homes in America because they’re old,” he said. “It’s your grandmother’s home. It needs new carpet, new kitchen, new air conditioning, heaters.”
Cardone said that many buyers would prefer to buy a smaller home with amenities than an older home that needs to be completely renovated.
“You’re going to be more likely to move into a smaller condo or an apartment and get all the new amenities and a swimming pool and a gym and electronics and smart TVs, and all the cool stuff that people want today,” he said. “Not only do we have a shortage of inventory, we have a shortage of desirable inventory by 10 times.”
Don’t Confuse a Housing Supply Crisis With a Housing Crisis
Cardone explained that while we are in the midst of a housing supply crisis, a possible housing crisis — an overall failure of the housing market — is decades away.
“I don’t think we’re headed for a housing crisis,” he said. “Seventy percent of the loans in America are either paid or they’re below 4%. You have 40% of Americans that have a loan under 3% for the next 28 years. So we don’t have a crisis until the year 2051.”
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