The Type Of Home Many Millionaires Live In May Surprise You

Thanks to shows like "Lifestyles of the Rich and Famous" and "MTV Cribs," there's the societal belief that, if someone is a millionaire, they probably reside in a lavish living space. And for many wealthy individuals, this is certainly the case. Take, for instance, Adele, who purchased Sylvester Stallone's former Los Angeles mansion for $58 million, or The Weeknd, who spent $70 million on a 33,000-square-foot Bel Air mansion that's equipped with several pools, a home theater, and nine bedrooms.

Yet, amongst the wealthy of the world, those who splurge on such luxury homes are actually in the minority. The bulk of millionaires (who practice these five financial habits, by the way) believe that, just because they have the funds to buy that multi-pool mansion with endless bedrooms, they don't need to. Though the over-the-top and materialistic lifestyles are what's shown on television (because let's be real, they are entertaining to watch), the average millionaire tends to opt for a more humble abode.

Opulent living (and splurging on luxury clothing brands that are actually worth your money) may seem like the norm for the rich and famous, but it's actually the exception. A 2024 survey conducted by Bo Hanson and Brian Preston, of "The Money Guy Show" on YouTube found that a whopping 74% of millionaires live in a home that's valued at less than $1 million. Said Preston, "I thought that was very telling. Only 1% of our population of millionaires live in homes greater than $5 million," adding, "So 'Lifestyles of the Rich and Famous,' 'Cribs,' and all the other perceptions is false. The reality is, our millionaire next door is the reality for most millionaires in America."

A study by Thomas J. Stanley, Ph.D., a bestselling author who's studied the wealthy in America for decades, also found the majority of millionaires tend to live modestly. According to Stanley, when a millionaire lives below their means, they're more likely to remain a millionaire. In an interview with Bottom Line/Personal, he explained that "While it's true that real estate tends to increase in value, big homes also have big costs — including big mortgage payments, property taxes, heating and cooling bills, and insurance and maintenance bills."

By saving on such costs, a wealthy individual is able to use that money elsewhere, whether that be investing in stocks (check out these 10 tips for investing in stocks as a beginner), buying a second property, or donating to charity. Another number to consider, according to Ramsey's National Study of Millionaires for 2024, approximately ~60% of millionaire homes are valued at $500,000 or less.

In early 2024, actor and talk-show host Drew Barrymore went viral for her cozy apartment in New York City. Despite being worth $125 million, Barrymore resides in a quaint living space, which has an average-sized kitchen, a cluttered bedroom, and a bare-bones living room with a small TV. Fans praised Barrymore for her "normal" residence, reveling in the fact that their own apartments look very similar to hers.

Another wealthy individual who lived below his means was Charlie Munger, the late vice chairman of Berkshire Hathaway. Though he was worth $2.6 billion, the investor remained for 70 years in the same California home. His business partner Warren Buffett did the same, choosing to live in the same Nebraska home that he purchased in 1958 for $31,500. "[Buffett and I] are both smart enough to have watched our friends who got rich build these really fancy houses," Munger told CNBC prior to his death in 2023. "And I would say in practically every case, they make the person less happy, not happier." Plus, Munger didn't want his children to become spoiled.

As for "Twilight" star Robert Pattinson, who's said to be worth $100 million today, he previously transitioned from a $6.27 million home in the Los Feliz neighborhood in Los Angeles to a smaller $2.8M residence in Coldwater Canyon in Beverly Hills. For the actor, the size of the mansion was unnecessary. He told The Hollywood Reporter, "I could basically live in a cell as long as I had a window."