Grant Cardone: Harris Will Make Housing Less Affordable for the Average Buyer
Written by
Gabrielle Olya
Edited by
Gary Dudak
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One of Kamala Harris’ campaign promises is to make housing more affordable for middle-class Americans. Her plan to do this involves building more affordable housing to help with the supply crisis and providing first-time homebuyers with up to $25,000 to help with their down payments.
But not everyone believes this plan will work. Grant Cardone, fund manager and CEO of Cardone Capital and Cardone Training Technologies, thinks that housing will actually become less affordable if Harris becomes president — here’s why.
Cardone: Harris’ Plan Will Benefit Builders and Sellers, Not Buyers
Cardone, who will be hosting his 2024 Real Estate Summit in Miami from Oct. 14 to 15, does not believe giving first-time homebuyers a $25,000 credit will make housing more affordable. Instead, he believes this will just cause builders and sellers to raise their prices.
“If Kamala passes the $25,000 [credit], the builder is just going to raise the house [price by] $75,000,” he told GOBankinRates. “It’s going to benefit the builder and the seller — not the first-time buyer. It’s naive.”
Not only does Cardone think builders and sellers will raise prices to compensate for the credit, but home prices will also increase due to more buyers in the market.
“It’s going to create more competition and so the housing prices will go up,” he said.
Others Have Also Been Critical of Harris’ Housing Plan
Cardone isn’t the only expert who has criticized Harris’ plan to make housing more affordable. In a recent CNN interview, “Shark Tank” star Kevin O’Leary also shot down the viability of the vice president’s proposal.
“There are bad ideas; bad, bad ideas, and really bad ideas, and that falls into this category,” he said. “When you get $25,000 to anybody in a constrained market, you cause inflation. So if there’s three houses for sale on the street and everybody bidding on it gets another $25,000, all of that attributes to the seller, and you cause the price of the house to go up because there’s no supply.”
O’Leary also questioned Harris’ plan to build 3 million new housing units.
“Everybody knows in real estate — that’s what I do for a living — that it’s not controlled by federal mandate,” he said. “Housing is state by state. She can do nothing to solve that problem. There’s no way she’s building 3 million houses. Where? Which state is going to give her that mandate?”
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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