Ultra-rich Americans now pouring cash into luxury real estate for ‘safer, less volatile’ investment than stock

From Yahoo Finance.: 2025-05-24 06:30:00

Amid market volatility, the ultra-wealthy are investing in luxury real estate, with a surge in $10 million-plus home sales in Palm Beach, Aspen, LA, and Manhattan. Real estate offers stability and inflation protection, attracting buyers like Dan Herbatschek and David MacNeil, who recently spent $94 million in Manalapan, Florida.

While real estate appeals to the ultra-wealthy, regular Americans can benefit too, with the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index rising by over 50% in the past five years. Real estate offers diversification beyond stocks, though being a landlord comes with responsibilities. Crowdfunding platforms and REITs provide alternative ways to invest in real estate without direct ownership.

Despite the appeal of real estate, stocks remain a viable investment option. Car dealership owner Todd Green, who recently bought a $17.8 million vacation home, remains heavily invested in stocks despite market fluctuations. Warren Buffett’s long-term investment strategy emphasizes owning the S&P 500 index fund for diversification and simplicity, accessible to all investors regardless of wealth.



Read more at Yahoo Finance.: Ultra-rich Americans now pouring cash into luxury real estate for ‘safer, less volatile’ investment than stock