Everyone dreams of buying a home...Warren Buffett warns that even the rich need to be aware of one thing.

Ask the 94-year-old "stock god" Warren Buffett for investment advice, and the average person might expect him to mention his long-term holdings in Coca-Cola or American Express, but Buffett argues that his personal investments over the years are even more impressive than the operations of his Polkshires, one of which is home buying.

Buffett has lived in Omaha since 1958, when he and his late wife Susan bought it for $31,500 (about $336,700 today), but the price of the house has outpaced inflation, and according to Realtor.com, it's now worth more than $1.4 million, with an approximate 4,300% return, in very Warren Buffett-like fashion.

But Warren Buffett has also said that people often feel the pressure to buy a home - it's part of the American dream, after all - but it also depends on one's finances, and sometimes renting is a smarter decision.Even the super-rich can overspend if they don't act prudently.That warning is even more relevant today, as the affordability of housing has deteriorated dramatically; Redfin data show that the median price of an Omaha home today is $275,000, nearly eight times what Buffett paid for his home back in the day.

If home buyers have a low opinion of what's possible, or if government-protected lending banks are encouraging the dream of buying a home, it could end up being a nightmare," Buffett said."The goal of our American society should not be to put families in their dream homes, but to put them in affordable housing."