Grant Cardone, CEO of Cardone Capital, isn’t pulling any punches when it comes to Vice President Kamala Harris’ economic proposals. Cardone, known for his outspoken views, takes particular aim at Harris’ plan to offer $25,000 down payment assistance for first-time homebuyers. He argues that this approach is a prime example of why we shouldn’t rely on government intervention to solve issues in the free market. “We don’t want the government to try to solve free-market problems because it can’t,” Cardone asserts.
He points to the Biden-Harris administration’s Infrastructure Investment and Jobs Act, which allocated $7.5 billion to build 500,000 public charging stations for electric vehicles across the country. Despite the ambitious goal, the number of functional charging stations has reached a measly eight. This, he argues, illustrates the government’s inability to effectively implement large-scale projects.
Cardone further questions the feasibility of Harris’ goal to build 3 million affordable housing units in the next four years. He argues that the $25,000 down payment assistance won’t be enough to make a significant impact on the median home price of $425,000 in America. Instead, Cardone believes we should look to the innovative ideas emerging from the private sector to tackle the housing crisis. He highlights three promising solutions:
1. Britain’s Shared Equity Program:
This program allows first-time buyers to purchase a percentage of a home, with the remaining portion financed through a loan. This loan is typically interest-free for the first five years, making homeownership more accessible.2. Roots’ Equity-Earning Renter Program:
This program allows tenants to earn equity by consistently paying rent on time, maintaining a clean record with law enforcement, and participating in regular property inspections. This approach incentivizes responsible tenancy while simultaneously building equity for renters.3. Divvy Homes’ Homeownership Pathway:
This program is designed to help renters transition into homeownership over a three-year period. By making an initial down payment of 1-2% and paying a monthly fee that includes built-in savings, renters can gradually accumulate the funds needed for a down payment.Cardone argues that the government has a poor track record in addressing the affordable housing crisis. He cites the Low-Income Housing Tax Credit program, which has created fewer than 4 million housing units over 34 years. He concludes that the market, not the government, holds the key to achieving meaningful change in the housing landscape. “The market needs to make this change happen, not the government,” Cardone declares.
Cardone’s strong stance against government intervention and his focus on market-driven solutions are sure to spark debate. However, his call for innovative approaches and his skepticism towards government efficiency are likely to resonate with those who are frustrated with the current state of the housing market.
