Warren Buffett once said he’d buy a ‘couple hundred thousand’ American homes.
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In 2012, Warren Buffett told CNBC that if there was a way to buy thousands of single-family homes at once, and to manage them easily, he would “load up” (1)
He also emphasized he’d take out mortgages at “Very, very low rates.”
For Buffett, those low mortgage rates were what made housing such a great opportunity. He’s a value investor after all, which means he seeks investments with low prices relative to what they’re actually worth.
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And at the time, consumer confidence was low, driving housing prices down. Buffett’s advice in those market moments? “Be greedy when others are fearful.”
Indeed, it would have paid off for the typical American homebuyer. The median price of an American home was $251,700 in Q4 2012 (2). As of Q2 2026, this figure is now $410,700. The all-time high was $442,600 in Q4 2024.
The question is, with prices and interest rates now so much higher than they were, would Buffett’s sentiment still hold for real estate as an investment now?
Invest with a mortgage
The average rate for a 30-year fixed rate mortgage was 3.59% in early August 2012 (3). These days, a 30-year fixed mortgage rate is around 6.67%
So, Buffett would probably be a little bit less jazzed on home buying in 2026.
That said, markets are cyclical. Usually — or at least in the world of interest rates — what goes up will eventually come down.
No matter what happens to interest rates, you’ll want to ensure you’re shopping around for the best rate possible — because the search really does pay off.
According to research from Freddie Mac, borrowers who applied for mortgages from two lenders saved up to $600 annually. If they applied for four or more, those cost savings doubled to $1,200 every year (4).
For an efficient way to shop for rates, Mortgage Research Center (MRC) helps you quickly compare rates and estimate your monthly payments from multiple vetted lenders. All you have to do is enter some basic information about yourself, such as your zip code, your desired property type, price range and annual income.
Based on the information you provide, MRC will show you mortgage offers tailored to your needs. After you match with a desired lender, you can set up a free, no-obligation consultation to see if you’ve found the right fit.
For those refinancing an existing mortgage, MRC can even help you find a better rate than what you currently have.
Become a landlord without the work
Buffett also clarified that in his dream world of buying all of those homes, he’d need to find an easy way to manage them as investments, too.
Several real estate crowdfunding platforms are currently stripping out the management and admin that’s usually required when you invest in real estate. This can make it easier than ever to tap into the real estate market.
mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
Institutional investors have long looked to private-market real estate as a way to help stabilize their portfolios. The asset class offers a mix of potential tax benefits, regular cash flow, a hedge against inflation and returns that are less correlated with public equities.
Historically, individual investors haven’t had great options for accessing high-quality, private-market real estate.
In recent years, crowdfunding platforms have opened access to a broader demographic, but outcomes often depend on factors like deal structure, platform incentives and the expertise of the sponsor.
Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
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Article Sources
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CNBC (1); Federal Reserve Bank of St. Louis (2), (3); FreddieMac (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.