Ultra-Rich Americans Are Pouring Their Money Into This 1 Asset Class Instead Of Stocks - And Believe There's 'No Bad Time' To Buy It. Do You Own Any?

2025-09-22 02:05:00

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With the stock market on a rollercoaster ride, recession warnings piling up and interest rates still elevated, you might expect Americans to hold off on big-ticket purchases. But for the ultra-wealthy, there's one thing they're still snapping up, even amid the chaos: luxury real estate.

According to a Wall Street Journal report, the number of U.S. homes sold for $10 million or more has surged in major markets since February.

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In Palm Beach, Florida, the number of $10 million-plus home sales jumped 50% between February 1 and May 1 compared to a year earlier. In Aspen, Colorado - a luxury ski destination - sales climbed by 44%. Los Angeles County followed with a 29% increase, while Manhattan saw a 21% uptick

For some, it's a way to sidestep market volatility and preserve purchasing power.

“The chance of taking a hit in the stock market is a bit too high for the reward, especially when we consider inflation,” said applied mathematician-turned-entrepreneur Dan Herbatschek.“Real estate is safer, less volatile.”

When inflation rises, property values often follow, driven by the increased costs of materials, labor and land. Rental income tends to rise as well, offering landlords a revenue stream that adjusts with inflation.

Herbatschek recently signed a contract to purchase a $12.25 million five-bedroom condo in New York City's Upper East Side for his family, and he's also acquiring three investment properties priced between $2 million and $5.5 million.

Meanwhile, billionaire manufacturing executive David MacNeil has been expanding his footprint in Manalapan, Florida. In March, he signed a contract to buy a $55.5 million property next to a site he already owns - bringing his total real estate spending in Manalapan to a staggering $94 million over the past year.

And he's unapologetic about the price tag.

“There's really no bad time to buy great properties,” MacNeil remarked.“No one ever regretted buying the very best, whether it is a premium collector car or a piece of premium real estate. Scared money chases bargains, and smart money chases excellence.

How to invest in real estate - even without millions

To be sure, real estate isn't just for the ultra-wealthy. Regular Americans can benefit from it, too - just ask homeowners.

Over the past five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has jumped by more than 50%, reflecting strong demand and limited housing supply.

Of course, purchasing a property requires significant capital - and finding the right tenant takes time and effort. But thanks to new investment platforms like Homeshares , you don't need to own a property outright to gain exposure to real estate.

Homeshares gives accredited investors access to the $34.9 trillion U.S. home equity market - a space that's historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund - without the headaches of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

But investing in real estate and other alternative assets come with risk, as they generally require a long investment horizon. Plus, they have a significant impact on your taxes.

Range helps accredited investors weigh these factors through tailored advice and hands-on wealth management - so you can decide which investments fit your long-term plan.

The all-in-one wealth management platform can help you build and balance your portfolio to meet your financial goals, as well as optimize strategies to minimize your tax burden. High income earners with an annual household of income of over $200,000 can get access to 24/7 expert advice and personalized strategies - all at a fraction of the cost of traditional CFPs.

You can book a free demo with the Range team to explore how a structured approach to planning could impact your wealth over time.

If you're not an accredited investor, crowdfunding platforms like Arrived allow you to enter the real estate market for as little as $100.

Arrived offers you access to shares of SEC-qualified investments in rental homes and vacation rentals , curated and vetted for their appreciation and income potential.

Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.

Read more: Here are 5 'must have' items that Americans (almost) always overpay for - and very quickly regret. How many are hurting you?

Warren Buffett's advice

While real estate clearly appeals to the ultra-wealthy, that doesn't mean stocks are off the table.

Take car dealership owner Todd Green, who recently bought a $17.8 million slopeside vacation home in Vail, Colorado. Despite the market's ups and downs, he's still heavily invested in stocks - and unfazed by short-term volatility.

“It's like Warren Buffett always said: If you're thinking about the stock market over a period of a day or a week, you shouldn't be in it,” he remarked.“I don't plan on ever selling my stocks, so this is a little blip on the radar.”

Buffett has long championed the power of long-term investing - especially through one strategy that doesn't require stock-picking skills or market timing.

“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett famously stated.

This approach gives investors exposure to 500 of America's largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active management.

Buffett's belief in this strategy runs so deep, he's built it into his own estate plan - directing that 90% of his wife's inheritance will be invested in“a very low-cost S&P 500 index fund” after his passing.

The beauty of this approach is its accessibility - anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns , a popular app that automatically invests your spare change.

Signing up for Acorns takes just minutes: link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference - your spare change - into a diversified portfolio. With Acorns, you can invest in an S&P 500 ETF with as little as $5 - and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.