One way might be instead of aiming for physical real estate, prioritize owning other valuable assets like stocks, bonds, or even a small business. You can gain exposure to real estate without the burden of ownership by investing in Real Estate Investment Trusts (REITs). At the same time, aggressively pay down high-interest debt and build a robust emergency fund to create financial security. Lastly, re-evaluate your lifestyle by embracing the practicality of renting while using the money you would have spent on a down payment and mortgage to invest and grow your wealth. The goal is to make yourself less dependent on a system that is undergoing rapid change most do not understand that is not in your favor and to build financial freedom on your own terms.
Another solution would be self-sufficient communities that offer a compelling alternative to traditional homeownership by pooling resources and embracing a cooperative economic model. Instead of individuals taking on debt for a mortgage, the community collectively owns land and housing, dramatically reducing or eliminating individual debt. This model allows members to share costs for essential needs like housing, food, and utilities, which lowers their overall expenses and builds collective wealth. While this approach provides significant financial and social benefits, it requires a strong legal structure, clear communication, and a high level of trust among members to navigate potential disagreements and ensure the community's long-term financial stability. It represents a shift from individualistic asset accumulation to a more communal, resilient way of living.
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Debt-Based Capitalism Is Over, Gives Way To Asset-Based System
Posted by: ECONOFIN VIA YouTube | September 1, 2025
America is being twisted out of its private property as homebuilders are selling entire neighborhoods to Wall Street. Since 2019, the so-called Build-to-Rent sector has exploded by 270%, and now represents 9% of all single-family construction. The metrics have changed: it is now more profitable to rent a house to you than to sell it to you in the first place. Affordability and availability have driven home-buyers out of the market, forcing them to rent. The trend seems irreversible, regardless of economic conditions. The current trajectory suggests the transformation will be complete by 2030.
The race to asset-based tokenization makes sense to Wall Street because it will deal a fatal blow to the debt-based financial system that the Federal Reserve has been operating since 1913. I can see this clearly now: sometime in the near future, remaining homeowners will be offered a cash-out deal for their house in return for handing over their title while offering a rent-back at a higher price. Debt will be eliminated and the asset-based economy will be born. ⁃ Patrick Wood, Editor.
Warren Buffett just made a shocking move that nobody's talking about – and it could completely change how you think about buying a home.
While everyone's waiting for a housing crash, the Oracle of Omaha quietly bet big on something that reveals where the real estate market is actually headed. But here's the twist: it has nothing to do with traditional home sales.
In this video, I expose the hidden strategy behind Buffett's latest investment and why major homebuilders are pivoting to a business model that could lock millions out of homeownership forever. Plus, I'll reveal the controversial signal this sends about whether we’ve hit the market bottom.
If you're trying to decide whether to buy now or wait, or if you're an investor looking for the next big opportunity in real estate, you need to see what Wall Street already knows.
The housing market is transforming right in front of us. The question is: will you be a winner or a victim of this shift?
Warren Buffett just bet nearly a billion dollars on two of America's most controversial homebuilders. Companies known for building what some call disposable houses. That's right. While everyone else is panicking about a housing crash, Berkshire Hathaway quietly accumulated $800 million worth of LAR stock and another $191 million in DR Horton shares during the first half of 2025. But here is what should really blow your mind.
These builders aren't making most of their money selling homes anymore. They're becoming America's biggest landlords through something called Build-to-Rent. And the numbers are absolutely staggering.
The Build-to-Rent sector has exploded by 270% since 2019, with these companies now controlling over 350,000 rental homes across America.
Look, I'm about to show you something that most investors completely miss about this housing market. There's a reason Buffett's team is piling into homebuilders right when mortgage rates are stuck above 6.5%, and the average American needs to earn $126,700 just to afford a median-priced home.
And no, it's not because he thinks home prices are about to crash. It's actually the opposite. But before we dive into that, let me ask you something that might sound crazy.
What if I told you that DR Horton and Lennar don't actually care if you can afford to buy their homes anymore? What if their entire business model has shifted to something far more profitable? And what if the housing shortage everyone's talking about is actually their golden ticket to decades of guaranteed profits?
Stick with me for the next few minutes because I'm going to reveal three game-changing shifts happening in real estate right now that explain exactly why Berkshire Hathaway is making this massive bet. And trust me, once you see what's really happening behind the scenes, you'll understand why this might be the smartest housing play of the decade. All right, let's start with the elephant in the room.
According to Berkshire's latest SEC filing from August 14th, 2025, they now own 7.05 million shares of LAR and 1.48 million shares of DR Horton. Combined value, just over a billion dollars. Now, before you say Warren Buffett's lost his mind buying homebuilders in this market, here's the kicker. Probably wasn't even Buffett who made these trades.
These positions are below Berkshire’s typical billion dollar threshold for Buffett's direct involvement. This was likely Todd Combs or Ted Weschler, the portfolio managers, who each run about 10% of Berkshire’s portfolio. But here's why that matters even more. These guys don't make headlines unless they find something really special.
Think about this for a second. Mortgage rates are sitting at 6.58% according to Freddie Mac's latest data. First-time buyers now make up only 24% of the market, the lowest share since 1981. The median home price hit $435,300 in June 2025. And the average household needs to earn over six figures just to qualify for a mortgage. So why on earth would anyone buy home builder stocks right now? Here’s where it gets interesting.
Remember when I mentioned that these builders don't care if you can buy their homes? Let me show you what I mean. DR Horton has quietly built over 14,000 rental homes since launching their build-to-rent division in 2019. They're now operating in 33 states with 38,400 homes in inventory for 2025. In just their last quarter, they sold 1,650 single family rental homes for $313.5 million, not to families, but to institutional investors.
Did you catch that? They're not selling to you and me anymore. They're selling entire neighborhoods to Wall Street.
But wait, it gets even crazier. Lennar just partnered with Invitation Homes, you know, the company that owns 80,000 single family rentals across America. Through their Upward America venture, backed by $1.25 billion from Centerbridge Partners and Alliance Real Estate, they're planning to deploy over $4 billion to buy and rent out homes. The partnership already includes 4,400 homes in Florida, Texas, and the Carolinas. Now, you might be thinking, "Okay, but why would this be profitable?"
Let me hit you with some numbers that’ll make your head spin. The build-to-rent sector now represents 9% of all single family construction, up from never exceeding 3.1% before 2008. Rent Cafe reports that 2023 was BTR's most successful year with nearly 27,500 homes completed. That’s 75% more than 2022 and triple 2021's numbers.
Here's the part nobody's talking about. These aren't your typical rental properties. The average BTR home rents for $2,181 per month according to CBRE's latest data. That's a 10 to 40% premium over comparable apartments. And get this, they’re maintaining 97% occupancy rates with only 28 to 35% annual turnover—way better than traditional apartments. Stop and think about what this means.
These builders have discovered that they can make more money renting homes than selling them. They get bulk sales to institutional investors, guaranteed buyers for entire developments, and they're building exactly what renters want: single family homes with yards in good school districts.
But here's where Berkshire's investment gets really clever. You see, everyone's focused on whether we're in a housing bubble. But that’s the wrong question. The real question is, what happens when an entire generation can't afford to buy homes?
According to the National Association of Realtors, only 6 million of America's 46 million renters can actually afford to buy a median-priced home right now. The required annual income to afford that median home: $126,700. Meanwhile, 31.3% of all households are already cost-burdened, spending more than 30% of their income on housing.
This isn't a bug in the system; it's become a feature.
Look at what's happening in California. The median monthly payment for a mid-tier home there is over $5,900. The required income: $237,000—literally double the state's median household income. Since January 2020, monthly payments have increased by 82%.
Now, are you starting to see why Berkshire's interested? When homeownership becomes impossible for most Americans, what's the alternative?
Renting.
And who's positioned to provide those rentals? The same builders who used to sell you homes. But here's the twist that should really get your attention. Phoenix has over 10,000 build-to-rent units with 4,460 new ones under construction. Dallas-Fort Worth, another 10,000 units. Atlanta just added 3,350 new BTR constructions. These aren't random markets. They're the fastest-growing metros in America where population is exploding, but homeownership is increasingly out of reach.
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