Real estate investor warns US is entering the 'greatest' correction of his lifetime

One real estate investor is bearing witness to the start of the industry’s "greatest" correction he’s ever seen. 

"I just want to say that we’re entering the greatest real estate correction in my lifetime," private equity fund manager Grant Cardone told "FOX & Friends" on Thursday while discussing the state of the industry.

"It’s [real estate correction] going to be a great opportunity for individuals, regular, everyday people to actually grab trophy real estate from institutions. This has never happened in the country," Cardone said.

"It’s going to be at epic levels," he expressed.

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Despite Cardone’s claim that the industry is entering new territory, the current housing market poses significant issues for any buyer or seller as interest rates and housing costs remain heightened. With sellers staying out of the market, low inventory exacerbates the problem, and results in rising home prices. 

"It’s unaffordable for people to own a home today," Cardone stressed while blaming the Federal Reserve for "single-handedly" killing the housing market with interest rate hikes.

"He [Fed Chairman Jerome Powell] has not controlled inflation. He has failed miserably. What he has actually done is created and, in the meantime, stopped the housing industry," the real estate investor said.

In order to jump-start the housing industry, Cardone is urging Powell to "step aside" and let the market correct itself.

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"Interest rates will have to come down in order for pricing to come down. This is actually a contradiction to what most people think. But when interest rates come down, mortgage applications will go up and people will start selling their homes," Cardone told co-host Rachel Campos-Duffy.

As first-time buyers' dreams of owning a home have been halted by high costs, those who are renting are experiencing similar economic pains.

Moody’s Analytics found that in Q3, the U.S. rent-to-income ratio (RTI) declined slightly by 0.5% and ended at 30% — a level that is the threshold for being rent-burdened. Renters are considered "burdened" if their rent payments consume 30% or more of their gross, or pre-tax, income. 

"The Fed will make more renters in this country in the next two years than it has in the last 50 because mortgage applications are at all-time lows," Cardone said.

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FOX Business’ Daniella Genovese and Eric Revell contributed to this report