What Real Estate Themes Are Billionaires Investing In? Here's Two

It's not surprising that the real estate market has slowed as a result of the Fed's repeated interest rate hikes, but what is surprising is that billionaires are interested in buying estate right now.

Why? Well, they are not purchasing residential homes but rather two forms of real estate: resorts and farms.

Urbanization is constantly placing pressure on agricultural land in the U.S., and the resort sector is generally centered around natural beauty, such as clean coasts and mountain views.

This could be the reason behind the investment in these sectors of the real estate industry.

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Oracle Corporation founder Larry Ellison reportedly spent more than $400 million on two resort estates in California's Lake Tahoe region.

Tilman Fertitta, Houston Rockets owner, is purportedly nearing a deal to acquire a luxury resort in Laguna Beach, California, for about $650 million, setting a state record for the costliest per-room resort transaction.

In addition, Fertitta purchased a 6% investment in Wynn Resorts, Limited in October.

Despite market analysts' dismal predictions, the Bureau of Labor Statistics released optimistic Consumer Price Index data last month, revealing a year-over-year inflation reduction from 8.2% to 7.7%.

As a result, high-profile investments in the resort sector might foreshadow a future economic recovery.

Individual investors interested in exposure to this industry might consider parking as little as $100 into rental properties to earn passive income and build wealth over the long term.

While investments in luxury resorts seem confusing in the current economic environment, the affluent purchasing farms isn't.

Farmland is one of the few asset groups that provide steady appreciation since it is both scarce and essential.

With over 240,000 acres, Bill Gates is currently the single largest private owner of agriculture in the U.S. Other affluent individuals, like Ted Turner, founder of CNN, and Taylor Sheridan, producer of successful series including “Sons of Anarchy” and “Yellowstone,” have purchased hundreds of thousands of acres in recent years.

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