“Spend the money on it”– Shark Tank star Barbara Corcoran shares her take on the current real estate market

Real estate mogul and Shark Tank investor Barbara Corcoran shared her insights on the state of the housing market. In an interview with ABC’s GMA3 on February 6, 2025, she discussed the rising costs of rent and homeownership, highlighting the financial benefits of buying a home despite high prices.

"Rents have gone up by 19% in the last five years, and house prices have gone up by 54%. So it's cheaper in most towns, certainly, to rent than to buy. But buying offers you a lot," Corcoran said.

She emphasized that homeownership provides long-term financial advantages, including appreciation and forced savings.

“You feel a little foolish. You can't hang the picture on the wall exactly where you want or do the kitchen renovation where you don’t want to spend the money on it,” she added.

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Shark Tank's Barbara Corcoran on real estate trends

During her GMA3 interview, Barbara Corcoran highlighted the growing challenges in the real estate market, noting that home prices have increased significantly over the years. She explained that while renting may seem like the better financial option in some cases, owning a home provides benefits that go beyond monthly costs. These include equity building, tax advantages, and a sense of stability.

Corcoran also pointed out regional differences in affordability, stating that renting remains the cheaper option in cities like San Francisco, Seattle, Salt Lake City, and New York. However, in places like New Orleans, Chicago, Pittsburgh, Miami, and Memphis, buying is the more cost-effective choice.

She stressed that while high mortgage rates may deter some buyers, waiting for lower rates might not be the best strategy. During an appearance on Fox Business' Cavuto: Coast to Coast on March 28, 2024, the Shark Tank investor stated:

"If rates go down just another percentage point – that's what I'm hoping for by year-end – prices are going to go through the roof because everyone will come out and buy."

Corcoran cautioned that if interest rates drop, demand will rise, causing home prices to increase further. She stated that waiting for rates to drop might not be beneficial, as buyers could end up paying more in the long run. She estimated that home prices could rise by 8% to 10% if mortgage rates decrease by a full percentage point.

Beyond affordability, the Shark Tank star addressed another pressing issue: rising home insurance costs in California. Speaking about the impact of wildfires, she mentioned that the state is struggling to find solutions for insurance coverage.

"The big insurance companies have gone up and asked for a 25% raise, and a lot of people are not willing to give it, but they need the money to insure," she said.

Sharing a personal experience, Corcoran revealed that she lost her home in Pacific Palisades to a wildfire. She also shared how her neighbor lost insurance coverage just two weeks before the fire due to a late payment.

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Shark Tank investor Corcoran’s simple tip to boost home value

Apart from discussing market trends, Corcoran shared a straightforward tip for homeowners looking to increase their property's selling price. On February 4, 2025, she posted a video on Instagram advising sellers to invest in a large living room rug.

"Do you want to get the best price for your house without breaking the bank? Here's what you do. Buy a new living room rug and buy a big one," she said.

The Shark Tank star noted that a rug in the living room might affect how purchasers view the size of a house. A bigger rug creates the illusion of more space and increases the property's perceived value.

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Shark Tank airs every Friday at 8/7c on ABC.