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Homeownership slipping further out of reach

California has long been notorious for its sky-high cost of living — and housing is a major reason for that.

According to data from real estate brokerage Redfin, the median sale price of a home in the U.S. was $441,738 in May 2025. In California, that figure jumped to $859,100 — nearly double the national median.

That kind of price tag puts homeownership out of reach for many residents. A recent study found that U.S. buyers need an annual income of $213,447 to afford a typical home in the Golden State.

But this affordability crisis isn’t limited to California. Home prices across the country have soared. Over the past five years, Redfin data show the median U.S. home price has surged by 48%.

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Getting a piece of the real estate pie

Despite elevated prices, real estate remains one of the most sought-after assets — and for good reason. It’s a tangible, income-generating investment that has historically held its value during periods of inflation.

When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts with inflation.

Investing legend Warren Buffett has long pointed to real estate as a prime example of a productive, income-generating asset. In 2022, he famously said at an annual shareholders meeting that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check.”

Why? Because no matter what’s happening in the broader economy, people still need a place to live and apartments can consistently produce rental income.

The good news? You don’t need billions — or even the budget to buy a single property outright — to start investing in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.

Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment.

Another option is Homeshares, which gives accredited investors access to the $35 trillion U.S. home equity market — a space that’s historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

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Jing Pan Investment Reporter

Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.

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