Cardone Says Rent First; Buying Costs $1,105 More
Owners and renters comparing costs should weigh the $1,105 monthly gap Zillow reported against what they could invest instead.
Updated on Nov. 1, 2026 in Residential
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Real estate entrepreneur Grant Cardone told viewers in a recent TikTok video never to buy a home until they are super wealthy, advising young people to rent and invest in themselves, their businesses, and cash-flowing real estate instead.
Why it matters
Cardone's argument centers on opportunity cost: money tied up in a down payment and closing costs could instead fund education, a business, or income-producing investments. Zillow's September rent report puts the stakes in monthly terms, with the typical U.S. rent at $1,932 and a new buyer's payment at $3,037.
Zillow's September rent report put the typical U.S. rent at $1,932 a month and a new home buyer's monthly payment at $3,037, a difference of $1,105 a month on average. Arrived allows eligible investors to buy fractional shares of rental homes for as little as $100.
The players
Grant Cardone
Real estate entrepreneur and investor known for promoting rental property and cash-flowing investments.
Zillow
Online real estate marketplace that publishes monthly rent reports tracking typical U.S. rents and buyer payments.
Arrived
Real estate investing platform that lets eligible investors buy fractional shares of rental homes for as little as $100.
The details
Cardone's approach asks whether the money needed to buy a home could generate more wealth elsewhere. He argues that funds set aside for a down payment, closing costs, and other expenses could go toward education, business opportunities, or income-producing investments. In his video he said, "never buy a home ever till you're super wealthy," and then, "Then you buy a home." He also urged viewers to "invest in yourself, invest in your business, and invest in real estate that cash flows."
Timeline
Zillow's September rent report published the rent and buyer payment figures cited in the story.
Cardone posted the TikTok video with his homeownership advice recently; the exact date was not provided.
The Home Front
Zillow's September rent report found buying costs about $1,105 a month more than renting on average, a gap that sits at the center of the rent-versus-buy debate. Cardone's advice runs against the prevailing push toward homeownership by treating that monthly premium as money that could be invested elsewhere.
If you are weighing a purchase, compare the typical monthly payment on a home you could afford against what you pay in rent, and factor in down payment and closing costs. Consider a licensed agent or lender before any transaction, since individual financial decisions depend on your full situation.
The takeaway
The rent-versus-buy gap of about $1,105 a month is the number to weigh before deciding. Track your own monthly housing costs against that benchmark and keep a licensed agent or lender on file before committing to a purchase.
Further reading
For more on the costs of owning versus renting a place to live, explore our Residential coverage.
Source note: This article includes information reported by Benzinga.
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