Despite owning billions of dollars in assets, many super-rich people in the US such as Mark Zuckerberg or the couple Jay-Z and Beyoncé still choose to take out a mortgage to buy a house. This is not just a simple financial decision, but a strategy to manage cash flow and optimize investment performance in a volatile economic environment.

As the US housing market continues to increase in price, the gap between income and real estate ownership is becoming increasingly clear. According to data from the US Federal Reserve, the average home selling price in the US in the first quarter of 2025 reached 503,800 USD. Meanwhile, the average US household income by the end of 2024 is only about 61,984 USD.

At this price, an average house in the US is currently priced nearly 7 times higher than the average annual income, a ratio far exceeding the recommended affordability threshold (about 3-4 times). This makes mortgages almost a mandatory option for most people.

However, it is worth mentioning that this form is not only for middle-income people, but also a strategic financial tool for the billionaire class.

Maintaining liquidity, taking advantage of interest rates, maximizing profits

Billionaires like Mark Zuckerberg, Elon Musk or the power couple Jay-Z and Beyoncé borrowing tens of millions of dollars to buy a house is not simply a financial choice, it is a cash flow management strategy.

In a typical example, Jay-Z and Beyoncé, despite owning assets of up to 1.16 billion USD since 2017, still chose to take out a mortgage of 52.8 million USD to buy a mansion worth 88 million USD in Los Angeles.

According to Mr. Robert Cohan, CEO of Carlyle Financial, this decision helps them “maintain high liquidity, and at the same time be able to pay off the loan at any time”.

Jay-Z and Beyoncé’s $88 million Los Angeles mansion (Photo: CNBC)

For professional investors, “burying capital” in real estate assets is not as effective as taking advantage of financial leverage to continue investing in higher-yielding opportunities.

Meta boss Mark Zuckerberg also used a similar financial strategy. In 2012, the social media mogul refinanced his home with a 30-year adjustable-rate mortgage (ARM) at just 1.05%, a rare low in the history of the US financial market. Although he could have bought the house with cash, he still chose to borrow to take advantage of the preferential cost of capital.

Currently, the average mortgage interest rate in the US is at 6.95%, down significantly from the peak of 8% in October 2024. The recent interest rate cuts from the US Federal Reserve are expected to continue, opening up new opportunities for both homebuyers and investors.

According to a study by LendingTree, up to 56% of refinancers received a better interest rate after comparing multiple lenders, and 81% of them reduced their borrowing costs compared to the original. This is a strategy that can be applied to all segments, not just the super-rich.

One of Mark Zuckerberg’s properties in Lake Tahoe, California (Photo: havenlifestyles.com)
New Trend: Indirect Investment in Real Estate

In addition to direct ownership, another trend that wealthy investors are interested in is indirect investment in real estate through specialized financial channels.

A typical example is First National Realty Partners (FNRP), which offers a commercial real estate investment model, focusing on shopping centers with major supermarkets such as Whole Foods, Walmart, CVS. This is an attractive option for accredited investors, who do not require direct property management but still have a stake in the rental cash flow.

In addition, the Homeshares platform with the U.S. Home Equity Fund is opening a channel for investing in home equity. Through Home Equity Agreements (HEAs), residents can exchange their property appreciation for cash, while investors receive a steady stream of income without taking on interest.

With a minimum capital requirement of $25,000 and risk-adjusted return expectations of 14%–17%, these models are aimed at wealthy investors who want to diversify their portfolios without the burden of direct asset management.

One of Mark Zuckerberg’s properties in Palo Alto, California (Photo: havenlifestyles.com)

Mortgage loans are no longer a “reluctant” solution for middle-income earners, but have become an optimal strategy that is popular among professional investors. The lesson here is not just about holding real estate, but how to use financial leverage to keep cash flow flexible and maximize investment returns.

In the context of shifting interest rates, real estate is still an important part of a long-term asset portfolio. However, the approach has changed: less dependent on full ownership, and more flexible thanks to modern financial instruments.