The Real Path to Getting Rich: Why Real Estate Alone Won't Cut It

You’ve probably heard it countless times: “90% of millionaires build their wealth through real estate.” It’s a compelling narrative that makes financial success sound accessible and straightforward. But here’s the uncomfortable truth—this widely-repeated assertion is fundamentally misleading, and understanding why matters if you’re serious about learning how to get rich.

Separating Fact from Fiction

Let’s start with some reality checks. The United States is home to approximately 23 million millionaires, representing about 6.7% of the population. Now, if we examine how these individuals actually accumulated their wealth, the real estate narrative begins to crumble.

Only about two-thirds of Americans own homes, and of those homeowners, a mere 8.2% possess properties valued over one million dollars. Even if we generously assume every single one of these million-dollar homes represents the owner’s entire net worth—which is rarely the case—we’re only accounting for roughly 5.3% of the population. That’s a massive gap from the claimed 90%.

The data becomes even more stark when we consider investment properties. Only 5% of Americans own multiple properties. For a wealth-building strategy supposedly used by the vast majority of millionaires, real estate ownership is surprisingly uncommon.

How Do You Get Rich, Really?

The answer is less glamorous than real estate marketing suggests: employment and entrepreneurship. Most millionaires build their fortunes through one of two paths—either by starting and scaling their own businesses, or by earning substantial income through high-paying positions and then investing wisely.

This doesn’t diminish real estate’s role entirely. Property can be a valuable component of a diversified investment portfolio. However, treating it as the cornerstone of wealth creation is a strategic mistake. Real estate requires significant capital upfront, involves illiquidity, and ties up resources that could potentially generate faster returns in other asset classes.

The Missing Piece: Active Income as the Foundation

Here’s what wealth advisors often gloss over: before you can invest passively in anything—whether real estate or digital assets—you need to generate substantial active income. Most millionaires first built high-income careers or businesses, then strategically deployed that capital across multiple investments.

Think of it as a two-phase approach: Phase One is maximizing earning power and maintaining financial discipline. Phase Two is diversifying that wealth across real estate, stocks, bonds, and other assets based on your risk tolerance and goals.

Building Wealth That Actually Works

Getting rich requires abandoning the search for a single “magic bullet.” Instead, focus on:

• Developing valuable skills that command premium compensation
• Building or joining high-growth businesses where equity participation is possible
• Maintaining disciplined spending to maximize investable surplus
• Diversifying investments across multiple asset classes rather than concentrating in one
• Compounding returns over decades through consistent, smart allocation

Real estate can certainly play a role in this strategy, but it shouldn’t be the foundation. History shows that sustainable wealth comes from multiple income streams and strategic asset allocation—not from betting everything on a single investment vehicle.

The Bottom Line

The “90% of millionaires made it through real estate” claim is a convenient myth perpetuated primarily by those who profit from real estate transactions. The actual data reveals a far more nuanced reality: most millionaires got rich through earning, owning businesses, and building diversified portfolios.

If you’re asking how do you get rich, the unsexy answer is hard work, intelligent risk-taking, and disciplined capital allocation. It’s not a catchy marketing slogan, but it’s far more reliable than chasing the next real estate or investment fad. Build your foundation through meaningful work, then strategically deploy your capital—real estate included, but not limited to it.