Investor Kevin O'Leary, also known as “Mr. Wonderful” from the TV show “Shark Tank,” is speaking plainly about the state of housing in America. The entrepreneur and investor recently appeared on Fox Business and posted on X to share his unrestrained view on what's happening to real estate prices, especially in California, Texas and parts of Florida.
- Massive Demand & Disruptive Potential – Boxabl has received interest for over 190,000 homes, positioning itself as a major disruptor in the housing market.
- Revolutionary Manufacturing Approach – Inspired by Henry Ford’s assembly line, Boxabl’s foldable tiny homes are designed for high-efficiency production, making homeownership more accessible.
- Affordable Investment Opportunity – With homes priced at $60,000, Boxabl is raising $1 billion to scale production, offering investors a chance to own a stake in its growth.
Mortgage Rates Aren't The Only Problem Anymore
“There’s three issues now,” O’Leary said. “Obviously, mortgage is No. 1, it always has been in driving purchase [decision]. But there’s two other things that have come out of nowhere, particularly in places like California. They are insurance and taxes.”
Don't Miss:
- If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?
- With Point, you can get up to $500,000 in cash from your property with no monthly payments and no income requirements — even if your credit isn't perfect.
He explained that when you add rising insurance premiums and high local taxes to already steep mortgage rates, housing affordability takes a major hit. “Affordability is down about 40%,” he said. “In other words, you’ve got to buy a house with 40% less square footage and pay the same amount on it.”
For many, that means the days of buying a standard family home are over. O’Leary painted a stark picture: “That means that classic three-bedroom, 2,500 square foot deal that you could pick up for $1.2 million, forget about it. You’re living in a trailer home now for the same price it cost in California.”
“That’s a big part of the market,” he added. “Same issues in Texas, same issues in certain parts of Florida. I watch this like a hawk because I’m a big real estate investor. It’s ground to a halt while these issues resolve.”
Trending: Invest Where It Hurts — And Help Millions Heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold.
In California specifically, he blamed the growing insurance crisis. “I mean, literally, if it isn’t earthquake, it’s flooding. Now you got fire. You get fried, drowned, and shaken there, and nobody wants to actually insure that.”
O’Leary's concerns reflect a broader frustration shared by many potential homebuyers and investors. With insurance companies pulling out of high-risk states and taxes remaining high, affordability is dropping even further for average families.
Divorce? Too Expensive
And it's not just housing where he sees major financial strain. O’Leary also didn't shy away from offering controversial advice on another issue: divorce. In a separate post on X, he argued that splitting up in your later years comes at too steep a price.
See Also: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation.
“You’re gonna give up a third of your net worth as you split these assets apart,” he said. “Why don’t you just live in separate bedrooms? It’s a lot cheaper. Divorce is too expensive, and there’s a better way, particularly if you’re in your 50s and 60s.”
His logic is that at that stage in life, big lifestyle changes aren’t worth the financial fallout. “You’re not gonna have new kids unless you’re nuts,” he said. “Why don’t you just live at separate ends of the house.”
O’Leary’s views may stir debate, but they underscore an obvious point: whether it's real estate or relationships, the financial pressures are forcing people to think differently about major life decisions.
Arrived Achieved A Total Return of 34.7% On Their Biggest Sale Yet — Diversify Your Monthly Income Stream With Fractional Real Estate
Arrived allows individuals to invest in shares of rental properties for as little as $100, providing the potential for monthly rental income and long-term appreciation without the hassles of being a landlord. With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio.
In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales.
Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.
Image: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
