Cardone’s Column: AForecast for 2021
that leave the people who want to leave their apartments in the city and head for the suburbs? Luckily for them and for investors, there is an alternative. Of course, I am talking about the multifamily rental units I love so much. This segment of real estate has been extreme - ly good to me along with those who have invested with me, and things are going to get even better. We all saw on the news how apart - ment owners and renters fled to the suburbs and rural areas this year as just about every business went remote to some extent. Now real estate observers point out that work - ing remotely is not going to end any- time soon. In fact, some companies are not going back in the office—ever. That means the demand for suburban and rural homes could continue to hold at its present level or rise even further. Construction of multifamily rental units is up by nine percent, but it still won’t be enough to satisfy demand for affordable upscale suburban housing, the way things are now. That means owners of units in multifamily residences will have a steady stream of tenants for the foreseeable future. Personally, I am anticipating huge demand for the type of properties I invest in. That is why I continue to grow my portfolio. As long as this demand keeps growing, you can expand with it and benefit from it. •
WHAT GOOD IS A SELLER’S MARKET IF NOBODY CAN BUY?
by Grant Cardone
know it is hard to remember or imagine, but back in January
ly home prices will continue to rise although nothing like what we saw in 2020. Things will eventually level off, but the average home price will provide major affordability challenges to most buyers, especially first-time home buyers, including Millennials and members of Gen Z, both of whom are at an age when buying a home is on their radar. Also, mortgage rates are forecasted to increase in 2021 ris - ing to three percent, then going up to 3.4 percent by the end of the year. So while it will still be a seller’s market, only a small percentage of the population will be able to afford even a modest house in a decent neighborhood. I am seeing fixer-up - pers and even teardowns going for as much as 70 percent over market value. Demand will probably no lon - ger be off the charts, but the prices will still make home ownership out of reach for most people. So where does
2020 things were looking pretty good. The economy was up. Unemployment was down. We had a healthy and sta - ble real estate market with opportu- nities for everyone. Then we all know what happened. Thankfully, it looks like things are finally starting to turn around. Regardless of how you feel about the election, it is one less dis - traction keeping us from getting down to business. Plus, a vaccine distribu - tion is in progress, which could be a game changer. However, while there are encouraging signs on the horizon, we are not out of the woods yet. There are still too many variables in play, but here’s what we do know. As people abandoned the cities in masses for the suburbs, home sales and prices hit their highest point in decades. Going forward through 2021, experts predict that single-fami -
Grant Cardone owns and operates seven privately held companies, and a $1.8B real estate portfolio as the Founder and CEO of private equity real estate firm,
Cardone Capital. Cardone is also the founder and leader of The 10X Movement and The 10X Growth Conference, which is now the largest business and entrepreneur conference in the world. Moreover, Cardone founded the Grant Cardone Foundation, a non-profit organization dedicated to mentoring underprivileged and troubled youth in character and financial literacy.
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