A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (2024)

Table of Contents
Sarah Stanley Fallaw, the director of research for the Affluent Market Institute, studied more than 600 millionaires for her book, "The Next Millionaire Next Door: Enduring Strategies for Building Wealth." She found that your neighborhood plays a huge role in how much you save and spend. If you live in a pricey home in an affluent neighborhood, you're more likely to mirror your neighbor's consumption habits and less likely to accumulate wealth over time. She found that most millionaires live in a home they can easily afford, allowing them to save more money. Consider Warren Buffett, who lives in a modest home in Omaha, Nebraska, that he bought in 1958 for $31,500, or $274,357 in today's dollars. That's 0.0003% of his $82.1 billion net worth. As of 2017, the home was worth an estimated $652,619. He called it the "third-best investment" he's ever made. It's 6,570 square feet, with five bedrooms and 2-1/2 bathrooms. It's also guarded by fences and security cameras. Meanwhile, Zappos CEO Tony Hsieh lives in a Las Vegas trailer park called "Llamapolis" that he created in 2014 as part of his efforts to revitalize the city. Llamapolis, which was inspired by the Burning Man festival, is home to 30 Airstream trailers and tiny houses. The cost of Airstream trailers ranges from $25,900 to $139,900. The most expensive option — $148,750, adjusted for inflation — is just 0.02% of Hsieh's $840 million net worth. Aptly named, Llamapolis is also home to Hsieh's pet alpacas, which (usually) live in a pen. Hsieh previously told Business Insider his favorite aspect of living in the park was impromptu interactions with his neighbors. Hseih said he founded Llamapolis "because I wanted to maximize serendipity and randomness in my life." Mark Zuckerberg lives in a home equal to 0.01% of his wealth. He paid $7 million for a house in Palo Alto in 2011, equivalent to $7.8 million today. While that's not an outright modest number, it is modest for a man worth $71.1 billion. It comes with a big backyard and a pool ... ... and lush, detailed landscaping. Inside, the house has tons of windows for sunlight ... ... a bathroom with a tub and separate sinks ... ... and a spacious kitchen. The house used to belong to Harrison Ford. At 7,164 square feet, the house has an open floor plan with plenty of sunshine ... ... a dining room, a library with dark-gray wood ... ... and a kitchen with marble accents. The backyard overlooks the city. Meanwhile, over in Beverly Hills is Serena Williams' home that she bought in 2017 for $6.7 million, or $6.9 million in today's dollars, only 3.8% of her reported $180 million net worth. The 6,000-square-foot, three-story Spanish-style residence sits on a quarter-acre lot in a gated community. It has five bedrooms, seven bathrooms, and a light and airy feel. The floors are brushed oak, and the kitchen — which opens out onto a veranda — has marble countertops. There's also a lower-level bonus room, complete with a glass-front wine cellar. Outside, the grassy backyard has a built-in grilling station and a swimming pool. Williams isn't the only sports star living in a relatively affordable home. Shaquille O'Neal's $21.9 million Florida home, which sits on 700 feet of lakefront property in a gated Orlando community, was put on the market in 2018. He bought the house in 1993 for a little less than $4 million, or $6.9 million in today's dollars. That's 1.7% of his $400 million net worth. The home has 12 bedrooms spread across 35,000 square feet. The entryway features a curved double grand staircase and polished marble floors, leading into the 1,170-square-foot great room. The master suite has a spacious walk-in closet, a mirrored wall, a gilded ceiling, and expansive views of the lake. O'Neal's home also has many additional rooms, like a recording studio, a 17-car garage, a cigar bar and lounge, a home theater, and, of course, an indoor basketball court. The outside is just as impressive, with a 95-foot-long, 15-foot-deep swimming pool and waterfall, space for barbecuing, and a cabana.

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Hillary Hoffower

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2020-03-01T16:45:00Z

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (1)

Melia Robinson/Business Insider
  • The key to building wealth is living in a home you can easily afford, according to Sarah Stanley Fallaw, a researcher who studied more than 600 millionaires.
  • She found that most of the millionaires she studied lived in houses that cost below their means, allowing them to save and accumulate more wealth.
  • Several well-known millionaires and billionaires, like Warren Buffett and Mark Zuckerberg, live in affordable homes that cost little compared with their overall wealth.
  • Visit Business Insider's homepage for more stories.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (2)

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A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (4)

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The key to building wealth? Living in a home you can easily afford.

That's according to Sarah Stanley Fallaw, the director of research for the Affluent Market Institute. She's an author of "The Next Millionaire Next Door: Enduring Strategies for Building Wealth," in which she surveyed more than 600 millionaires in America.

She found that no factor plays as big a role in accumulating money as where you choose to live. Most of the millionaires she studied had never purchased a home that cost more than triple their annual income. Even some high-profile, ultra-rich people — from Mark Zuckerberg to Serena Williams — have purchased homes well below their means.

To compile the list below, we compared each person's net worth with the cost of their homes. We didn't have the data to determine their net worth at the time of purchase, so we adjusted the house purchase price for inflation using an inflation calculator to compare that with their net worth today.

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For example, the billionaire investor Warren Buffett bought his home in 1958 for $31,500. Adjusted for inflation, that's equivalent to $274,357 in today's dollars, or just 0.0003% of his $82.1 billion net worth.

Everyone on this list owns a home that cost less than 5% of their net worth.

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Sarah Stanley Fallaw, the director of research for the Affluent Market Institute, studied more than 600 millionaires for her book, "The Next Millionaire Next Door: Enduring Strategies for Building Wealth."

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (5)

Courtesy of Amazon

Source: "The Next Millionaire Next Door"

She found that your neighborhood plays a huge role in how much you save and spend.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (6)

xavierarnau/Getty Images

Source: "The Next Millionaire Next Door"

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If you live in a pricey home in an affluent neighborhood, you're more likely to mirror your neighbor's consumption habits and less likely to accumulate wealth over time.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (7)

Lars Niki/Stringe/rGetty Images

Source: "The Next Millionaire Next Door"

See Also
Celebrity homes: 10 of the most luxurious houses of the rich and famous15 Most Expensive Houses In the World (Updated Ranking)How the super-rich buy their homes

She found that most millionaires live in a home they can easily afford, allowing them to save more money.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (8)

Nan Palmero/Flickr

Source: "The Next Millionaire Next Door"

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Consider Warren Buffett, who lives in a modest home in Omaha, Nebraska, that he bought in 1958 for $31,500, or $274,357 in today's dollars.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (9)

Bill Pugliano/Getty

Source: Business Insider

That's 0.0003% of his $82.1 billion net worth.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (10)

Business Insider

Source: Forbes

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As of 2017, the home was worth an estimated $652,619. He called it the "third-best investment" he's ever made.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (11)

Business Insider

Source: Business Insider

It's 6,570 square feet, with five bedrooms and 2-1/2 bathrooms.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (12)

Smallbones/Wikimedia Commons

Source: Business Insider

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It's also guarded by fences and security cameras.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (13)

Business Insider

Source: Business Insider

Meanwhile, Zappos CEO Tony Hsieh lives in a Las Vegas trailer park called "Llamapolis" that he created in 2014 as part of his efforts to revitalize the city.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (14)

Melia Robinson/Business Insider

Source: Business Insider

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Llamapolis, which was inspired by the Burning Man festival, is home to 30 Airstream trailers and tiny houses.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (15)

Google Maps

Source: Business Insider

The cost of Airstream trailers ranges from $25,900 to $139,900. The most expensive option — $148,750, adjusted for inflation — is just 0.02% of Hsieh's $840 million net worth.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (16)

tiny_house_expedition

Source: Wired, Washington Post

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Aptly named, Llamapolis is also home to Hsieh's pet alpacas, which (usually) live in a pen.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (17)

downtowntony/Instagram

Source: Business Insider

Hsieh previously told Business Insider his favorite aspect of living in the park was impromptu interactions with his neighbors.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (18)

marcusleonbaron/Instagram

Source: Business Insider

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Hseih said he founded Llamapolis "because I wanted to maximize serendipity and randomness in my life."

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (19)

mvh.lv/Instagram

Source: Business Insider

Mark Zuckerberg lives in a home equal to 0.01% of his wealth. He paid $7 million for a house in Palo Alto in 2011, equivalent to $7.8 million today. While that's not an outright modest number, it is modest for a man worth $71.1 billion.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (20)

Zillow

Source: Forbes, Business Insider

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It comes with a big backyard and a pool ...

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (21)

Realtor

Source: Business Insider

... and lush, detailed landscaping.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (22)

Source: Business Insider

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Inside, the house has tons of windows for sunlight ...

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (23)

Realtor

Source: Business Insider

... a bathroom with a tub and separate sinks ...

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (24)

Realtor

Source: Business Insider

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... and a spacious kitchen.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (25)

Realtor

Source: Business Insider

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The house used to belong to Harrison Ford.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (26)

Zillow

Source: Business Insider

At 7,164 square feet, the house has an open floor plan with plenty of sunshine ...

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (27)

Zillow

Source: Business Insider

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... a dining room, a library with dark-gray wood ...

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (28)

Zillow

Source: Business Insider

... and a kitchen with marble accents.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (29)

Zillow

Source: Business Insider

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The backyard overlooks the city.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (30)

Zillow

Source: Business Insider

Meanwhile, over in Beverly Hills is Serena Williams' home that she bought in 2017 for $6.7 million, or $6.9 million in today's dollars, only 3.8% of her reported $180 million net worth.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (31)

Michael Dodge/Getty

Source: Business Insider, Celebrity Net Worth

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The 6,000-square-foot, three-story Spanish-style residence sits on a quarter-acre lot in a gated community.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (32)

Courtesy of Sam Real, Nest Seekers International

Source: Business Insider

It has five bedrooms, seven bathrooms, and a light and airy feel.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (33)

Courtesy of Sam Real, Nest Seekers International

Source: Business Insider

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The floors are brushed oak, and the kitchen — which opens out onto a veranda — has marble countertops.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (34)

Courtesy of Sam Real, Nest Seekers International

Source: Business Insider

There's also a lower-level bonus room, complete with a glass-front wine cellar.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (35)

Courtesy of Sam Real, Nest Seekers International

Source: Business Insider

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Outside, the grassy backyard has a built-in grilling station and a swimming pool.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (36)

Courtesy of Sam Real, Nest Seekers International

Source: Business Insider

Williams isn't the only sports star living in a relatively affordable home. Shaquille O'Neal's $21.9 million Florida home, which sits on 700 feet of lakefront property in a gated Orlando community, was put on the market in 2018.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (37)

Alan Diaz/AP; The Agency; Shayanne Gal/Business Insider

Source: Business Insider

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He bought the house in 1993 for a little less than $4 million, or $6.9 million in today's dollars. That's 1.7% of his $400 million net worth.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (38)

The Agency

Source: Business Insider, NBC Sports

The home has 12 bedrooms spread across 35,000 square feet.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (39)

The Agency

Source: Business Insider

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The entryway features a curved double grand staircase and polished marble floors, leading into the 1,170-square-foot great room.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (40)

The Agency

Source: Business Insider

The master suite has a spacious walk-in closet, a mirrored wall, a gilded ceiling, and expansive views of the lake.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (41)

The Agency

Source: Business Insider

Advertisem*nt

O'Neal's home also has many additional rooms, like a recording studio, a 17-car garage, a cigar bar and lounge, a home theater, and, of course, an indoor basketball court.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (42)

The Agency

Source: Business Insider

The outside is just as impressive, with a 95-foot-long, 15-foot-deep swimming pool and waterfall, space for barbecuing, and a cabana.

A woman who studied 600 millionaires discovered that most of the superrich have surprisingly affordable homes. Here's what some of those look like. (43)

The Agency

Source: Business Insider

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