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If you remember 2008, chances are you also remember the fear. Home values were collapsing. Borrowers were defaulting. The phrase “underwater mortgage” was everywhere.
But fast forward to 2012, and Warren Buffett was telling CNBC viewers something no one expected to hear: that housing—yes, housing—was one of the best investment opportunities available.
During CNBC’s three-hour “Ask Warren” Squawk Box special, host Becky Quick asked Buffett a question aimed at everyday investors:
“If you are a young individual investor at home and you have your choice between buying your first home or investing in stocks, where would you tell someone is the better bet?”
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Buffett didn’t hesitate. “If I knew where I was going to want to live the next five or 10 years, I would buy a home and I’d finance it with a 30-year mortgage, and it’s a terrific deal,” he said.
He didn’t stop there. “If I was an investor that was a handy type, which I’m not, and I could buy a couple of them at distressed prices and find renters… it’s a leveraged way of owning a very cheap asset now, and I think that’s probably as attractive an investment as you can make now.”
At the time, homes really were cheap. Prices had bottomed out after the crash, mortgage rates hovered near 3.5%, and properties were sitting untouched, waiting for someone with courage—and a toolkit.
Buffett made it clear he wasn’t that guy. His daughter Susie once joked he couldn’t even find the light switch in their house. He understood the math of real estate, not the manual labor. Still, his message was simple: if you had the skills and long-term vision, buying homes in 2012 was a rare opportunity.
In 2025, Mortgage rates have climbed past 6.7%, according to Freddie Mac, making monthly payments significantly more expensive than they were a few years ago. Meanwhile, home prices remain elevated. Zillow reports that the typical U.S. home value in June was around $369,000—up 0.5% from the same time last year and still more than 30% above pre-pandemic levels. Sellers with sub-4% mortgage rates are hesitant to list, and many buyers are sitting out, unable or unwilling to purchase at current prices and borrowing costs.
