Grant Cardone on California's affordability crisis: It's 'unaffordable to live in California'

Grant Cardone, an entrepreneur and real estate investor, expressed concerns on X about California's regulations and permit bureaucracy. He said that these factors have made living in the state unaffordable and urged for the consolidation of permits and removal of entrenched stakeholders to address the crisis.

"Ridiculous Regulations & endless layers of permits has made it unaffordable to live in California," said Cardone. "Get rid of Newsom, Bass, the coastal commission, fringe environmental groups and consolidate all permit approvals into one stop shop. What's happening in California is a national crisis not confined to the state but the insanity & cost are exported to our other great states & cities. Flip California & you stop the madness everywhere."

California's housing market remains one of the most expensive in the United States. As of September 2023, the median home value reached approximately $747,400, more than double the national median of $349,500. This disparity highlights a severe issue in housing affordability. According to experts and advocacy organizations, this crisis is driven by supply shortages, restrictive zoning laws, protracted permitting processes, and state environmental regulations that collectively slow down new housing development.

According to Lookout, California's cost of living is broadly unaffordable across multiple essential categories—not just housing. The state's overall cost of living is 42% higher than the U.S. average. Housing costs are 101% above the national median; transportation costs are 27% higher; utilities are 22% higher; and food costs are 17% above average. These elevated expenses make day-to-day living financially burdensome for many residents.

One of the few bills offering a rare instance of near-term relief in California’s affordability debate, SB 371 would reduce California’s rideshare insurance requirement, with backers arguing it will help lower transportation costs by bringing fares down for riders while boosting demand, and earning potential, for drivers.

Despite California's immense economy, it has one of the highest poverty rates in the nation when measured by the Supplemental Poverty Measure (SPM), which adjusts for local cost of living. High housing and living costs are primary contributors to this hidden poverty. Data from the Pacific Research Institute indicates that an estimated 2.6 to 3 million people are pushed into poverty in California due to exorbitant daily living costs rather than lack of income alone.

Cardone is a real estate investor, author, and founder of Cardone Capital, which manages billions in multifamily assets. He is also a practicing Scientologist and has spoken publicly about how Scientology influences his business and personal philosophy. According to CalMatters, Cardone has increasingly used his platform to influence political and economic discourse, especially in California.