In 2012, Warren Buffett made headlines with his bold commentary on the housing market during an interview with Becky Quick on CNBC’s Squawk Box.
At the time, the US economy was still recovering from the devastating effects of the 2008 financial crisis, and the housing market was one of the sectors most impacted. Still, Buffett’s perspective was unusually optimistic. He famously said, “If I had a way to buy a few hundred thousand single-family homes and have a way to manage them… I would buy them. I would take out mortgages at very, very low rates.” For Buffett, homes were not just a shelter but also an excellent investment opportunity, especially when financing costs were at an all-time low.
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This insight came when confidence in real estate was shaky at best and many people were hesitant to dive back into the market. For Buffett, however, the crisis created an opportunity that smart investors could seize if they had the foresight and patience.
His famous quote, “Be fearful when others are greedy. Be greedy when others are fearful,” perfectly captured the mindset needed to navigate these turbulent times. Investors who followed this advice likely saw significant rewards when the market recovered.
For example, in 2012, the average price for a single-family home in the US was about $180,000. In 2024, that number was approximately $418,000. That’s a jump of about 132% over twelve years. No one has a crystal ball to predict what the market will do, but real estate has proven to be a steady and stable way to build wealth.
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But what made Buffett’s advice so striking was not just his optimistic view of real estate, but also its simplicity. He recommended buying homes with a 30-year mortgage, arguing that homes would even outperform stocks if bought at the right price over the long term.
Over the years, the billionaire investor has consistently praised the 30-year mortgage. In a 2017 CNBC interview, he said, “It’s a one-way renegotiation. It’s an incredibly attractive tool for the homeowner and you have a one-way bet.” If interest rates drop, refinance and pay off the house early. If they go up, you’re locked in.
