Why does Mark Zuckerberg still rent?

The country's 36th-richest man has a new place, and it's a rental. Whither the American Dream of homeownership?

By Tony at MSN Real Estate Jan 18, 2011 8:07AM

Mark Zuckerberg's new home (© Gawker)Lost somewhere amid his inspiring the Golden Globes 2011 best picture, running the country's most visited website and pledging $100 million to Newark, N.J., to save its schools was news that Mark Zuckerberg shortened his commute.

Late last week, Gawker, MSNBC and other sites reported that the Facebook CEO recently moved from one Palo Alto, Calif., home to another seven blocks away — and closer to Facebook headquarters, just down the street. It's also a size upgrade, from 2,350 square feet in his previous place to 3,800 in the new one.

The kicker is that Zuckerberg, who ranks No. 36 on Forbes' most recent list of the richest Americans, is renting. He rented his previous place, too.

 

First question: Didn't his landlord see that zip-line-off-the-chimney scene in "The Social Network"?

 

More important: What does it say about the state of the U.S. housing market when a man reportedly worth $7 billion decides not to buy a home?

 

Post continues below video

 

 

 

 

Well, for one, it shows that Zuckerberg may in fact read the news. Today, the National Association of Home Builders reported that in January, builders yet again view sales conditions as poor — continuing a 3.5-year streak of NAHB/Wells Fargo Housing Market Index readings under 50, the benchmark for "good." January marks the third straight month the index has been at 16; the NAHB reports on December's housing starts tomorrow.

Most likely, an explanation for Zuckerberg's decision may come from three factors.

 

1. He's young. Now 26, Zuckerberg is a few years removed from the character that Jesse Eisenberg played in "The Social Network." But he's still a ways from 30, the median age of first-time homebuyers, according to the National Association of Realtors. His alleged $1 annual salary also compares poorly to first-time buyers' $59,900 median annual income.

2. He's a celebrity, and celebrities do rent. Granted, the real estate of the rich and famous seems to reflect an inordinate number of misguidedbuyingdecisions. But the celebrity life can be transient — rock stars tour, movie stars shuffle between filming locations and self-made billionaires eventually find it impossible to nest into an Aeron chair and code all day. These poor folks simply don't have time to enjoy their homes.

3. He's not planning on staying long — and he's not necessarily a dumb guy. With home prices still falling in many areas, houses no longer are a sure bet as appreciating assets, at least in the short term. Experts in this article say more buyers are looking at homes as shelter first and investment second. And in this market, buyers who don't have five to seven years to wait to recoup their purchase costs may be better off renting until the tide turns.

Next question: When Zuckerberg does buy his first place, will he replace the doorbell with a "Like" button? Will privacy settings in his guest bathroom be opt-in, opt-out or a perplexingly worded combination of both, spurring countless conspiracy theories? Will the Facebook puns ever cease?

 

— Tony Stasiek is a producer/editor at MSN Real Estate. He's the former editor of two leading mortgage-industry magazines and has worked as a newspaper editor and reporter.

 

 

 
14Comments
Mar 24, 2011 5:41AM
avatar
I think he'd be more likely to replace the doorbell with a "poke" button.
avatar

Wow, how interesting!  Am wondering why he has chosen to rent of course, hope we find out soon.  :)

Mar 23, 2011 7:25PM
avatar

'100100011001000110001010001011101100 ........just a remark

Jan 25, 2011 7:34PM
avatar
He seems like a pretty detached guy.  Rich or not, owning more is just more to maintain, insure and stress over.   I don't think he's worried about the stigma of being a renter.
Jan 25, 2011 12:01PM
avatar
Zuckerberg is obviously autistic -- Asperger's, I presume.  THIS is likely why he is a renter... the social aspects of a neighborhood and home ownership is simply foreign to his thought process, and likely always will be until something changes.  This likely won't change until he gets married.
Jan 25, 2011 11:09AM
avatar

claiming your primary residence is an investment is folly. Investments dont cost you & make you money.

 Live on 70% of your income.

 Save and invest 15% for emergency.

 Save and invest 15% for retirement, including rental property.

Jan 25, 2011 9:43AM
avatar
Wow... it's annoying how everytime this page loads the video starts playing automatically. I think it's better to always let the user choose whether or not he wants to play a video. I have to keep scrolling back up to pause the video.
Jan 25, 2011 9:42AM
avatar
I do find this article interesting -- really more as a curiosity. Mark Zuckerberg can afford anything, and it is interesting to me that he's choosing to rent. I would have liked it if the author would have interviewed Zuckerberg about this instead of simply postulating. And, if Zuckerberg doesn't agree to comment, then the author could say that.
Jan 19, 2011 11:30PM
avatar
Great,i'm a year older than him, earn a hand to mouth income,have a  50/50 chance of loosing the one i love so much to a rich guy if i'm unable to come up with money for an engagement,so confused and need help and this lucky guy is making news with his movement from place to place. and i don't even need that much..just to save my love!
this world...

Jan 19, 2011 12:43PM
avatar

I think he is smart why spend millions of dollars in a house that is not even worth it that much.. the house market in our country is shitty and overpriced... tres intelligent mon coeur Zuckerberg.

Jan 19, 2011 6:17AM
avatar
I don't think he is planning to stay long. 
But who really cares? I sure don't. 
Jan 18, 2011 11:58PM
avatar

The only thing I found surpising is that someone bothered to write an article about the CEO of Facebook renting a new place. If he wasn't smart he wouldn't be a CEO correct? DUH!

 

Hmmm, this gave me an idea though: I think I'll replace my doorbell with a mold of my middle finger and when people ring it it will play "**** you" by Overkill. LOL.

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

FIND YOUR DREAM HOME OR APARTMENT

or
Powered by

WHAT'S YOUR HOME WORTH?

HOME IMPROVEMENT PROFESSIONALS

Find local plumbers, electricians, contractors and more.