Grant Cardone, real estate mogul: “Flipping an Airbnb is not investing, it’s betting”

The popular short-rental platform Airbnb has seen spectacular growth with roughly 9 million listings, run by around 6 million hosts as of 2026. While people enjoy being able to stay in a home or apartment when they travel, hoping to enjoy the vibe of a locale that you usually don’t get with a hotel, residents in those areas aren’t always happy with the new temporary neighbors.

Especially in cities where tourists flock to in droves. Residents complain that the Airbnb units are driving up prices, pushing full-time residents out, and the mass influx of tourists is altering the character of neighborhoods. Additionally, guests don’t always respect that they are in a residential building where tenants have to go to work the next morning. The growing backlash has led governments around the world to impose tighter restrictions on the short-term rentals.

Airbnb regulations: “A forced threesome”

Cities from coast to coast in the United States that are tourist magnets such as Las Vegas, Los Angeles, New Orleans and New York have all implemented restrictions to varying degrees on short-term rentals. The last implemented the strictest set of regulations up to that point in September 2023, when LL18 came into effect essentially driving Airbnb out of the Big Apple.

The legislation stipulates that anyone who wishes to rent out space in their apartment for less than 30 days must register with the city. Furthermore, platforms that act as the middleman must verify this or face the fine if the host has not complied.

In addition to limiting what kinds of properties can be rented out, landlords can only rent out a portion of their house and to two adults at most. Likewise, they have to be present while the guests are staying there. American entrepreneur, real estate investor, and bestselling author Grant Cardone said this last rule was basically “a forced threesome.”

“Flipping an Airbnb is not investing, it is betting”

“In New York, the Airbnb market was crushed when the government decided, ‘No, short-term rental is 30 days, and you, the owner of the house, have to be at the Airbnb while Jarrod and his wife come hang out.’ So, it’s a threesome now,” he said.

While he has in the past said Airbnb is “OK,” he has long warned that it’s not an ideal long-term investment because it is “not scalable.” In a recent video he posted on social media he gave a harsher wake up call about the realities of investing in short-term rentals, specifically for Airbnb hosting.

“Flipping an Airbnb is not investing, it is betting. You’re gambling that you’re right, okay? And you’re right until the music stops,” he cautioned. “They did it in Nashville, They did it in Austin, They did it in Vegas, They’ve done it in New York.”

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