In a world where billionaires are often seen lounging on mega-yachts or hosting lavish parties in sprawling mansions, Elon Musk has taken a path that no one saw coming. The world’s richest man, CEO of Tesla and SpaceX, stunned fans and critics alike when he sold off his entire collection of luxury homes—seven mansions in total—and moved into a humble, 375-square-foot prefab house worth just $50,000.

Why would a man with a net worth in the hundreds of billions trade in luxury for simplicity? Here’s the real story behind Musk’s extraordinary lifestyle shift—and what it says about the future of ambition, innovation, and the American Dream.

A Billionaire’s Unlikely Decision

The story begins in 2020, when Musk took to his social media platform (then called Twitter, now X) with a cryptic announcement: he planned to “own no house.” Within months, the tech mogul had listed his entire property portfolio, including a series of opulent estates in Los Angeles’ exclusive Bel Air neighborhood.

It wasn’t a publicity stunt. Musk followed through, selling each of his homes and shocking the public with his next move: relocating to Texas and settling into a $50,000 “Casita” made by Boxabl, a company specializing in affordable, portable homes.

“My primary home is literally a ~$50k house in Boca Chica / Starbase that I rent from SpaceX,” Musk tweeted. “It’s kinda awesome though. Only house I own is the events house in the Bay Area. If I sold it, the house would see less use, unless bought by a big family, which might happen some day.”

Why Texas? Why a Tiny House?

Musk’s move to Texas was partly strategic. As Tesla and SpaceX shifted more operations to the Lone Star State, Musk wanted to be closer to the action. His new home is located in Boca Chica, near SpaceX’s rocket production facility—so close, in fact, that Musk can walk to work.

In a 2022 interview with the Full Send podcast, Musk explained: “My house is right next to the rocket factory. I can literally walk to the factory whenever I need to.” For a man obsessed with efficiency and productivity, it was a perfect fit.

But why such a small, modest dwelling?

“When friends come to stay in it, they can’t believe I live in this house… I find if I am by myself, it is fine,” Musk said. He’s been candid about his belief that building and maintaining a giant house is a poor use of time—especially compared to his bigger goals, like getting humanity to Mars and solving sustainable energy.

He told Joe Rogan: “Building a house, even a really great house, is not a good allocation of my time in comparison to getting us to Mars and helping solve sustainable energy.”

Inside Musk’s $50,000 Home

Musk’s Boxabl “Casita” is a marvel of compact design. At just 375 square feet, it includes a living area, kitchen, bathroom, and bedroom—all in a layout designed for portability and affordability. The house is a far cry from the palatial mansions Musk once owned, but he seems to relish the simplicity.

The Casita model is part of a growing trend in the U.S. toward minimalism and “tiny living”—a movement that’s especially surprising in the context of the world’s richest man. For Musk, the move is both philosophical and practical: less clutter, less distraction, more focus on what matters.

Rumors and Reality: The Austin Compound

Despite Musk’s public embrace of minimalist living, rumors have swirled about his real estate ambitions in Texas. In 2024, The New York Times reported that Musk had purchased multiple properties in Austin for $35 million, allegedly to build a sprawling compound for his 14 children.

“That way, his younger children could be a part of one another’s lives, and Mr. Musk could schedule time among them,” a source reportedly close to Musk told the Times.

Musk, however, quickly shot down the speculation. “I don’t own nor am I building a compound in Austin,” he told Page Six. “No grand family home has been built or is expected to be built.”

Starbase: Musk’s Vision for a New City

While the billionaire may not be building a family compound, he does have big plans for Texas. According to Business Insider, Musk wants his SpaceX complex—dubbed “Starbase”—to become an actual city. The idea: transform the area around the Boca Chica launch site into a municipality that could house hundreds of SpaceX employees and their families.

In May, SpaceX staff voted to include the surrounding area into an official city, which would span 1.5 square miles and house roughly 500 people. “Starbase is now a real city,” Musk tweeted after winning the vote.

The Philosophy Behind the Move

For Musk, the decision to downsize isn’t just about convenience or cost—it’s a statement. By rejecting the trappings of billionaire excess, he’s sending a message about priorities, innovation, and the future.

“I am accumulating resources to help make life multi-planetary and extend the light of consciousness to the stars,” Musk has said in the past. His minimalist lifestyle is a reflection of that mission: less time managing mansions, more time building rockets.

It’s a philosophy that resonates with fans and followers, many of whom see Musk as a visionary willing to walk the walk—not just talk the talk—when it comes to changing the world.

Not Your Typical Billionaire

Musk’s lifestyle is as unconventional as his business ventures. While other billionaires invest in art collections, private islands, or historic estates, Musk lives in a prefab house smaller than most studio apartments. He’s traded luxury for flexibility, comfort for focus.

Is it a publicity stunt? A personal quirk? Or a glimpse into the future of how tech titans might live?

Whatever the reason, Musk’s radical downsizing has captured the public’s imagination—and sparked conversations about what it really means to be successful.

Final Thoughts

Elon Musk’s decision to sell his mansions and embrace tiny living is more than a headline—it’s a window into the mind of one of the world’s most influential innovators. Whether you see him as a genius, a maverick, or simply eccentric, there’s no denying that Musk is rewriting the rules of what it means to be a billionaire in the 21st century.

As Musk himself might say, sometimes the best way to go big… is to go small.