Home Affordability Crisis
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The Home Affordability Crisis Is Breaking America
From The Desk Of Anthony Pomplianoยท 2025-11-13 22:00
Housing Market & Affordability - The home affordability crisis is impacting monetary policy, financial markets, and American politics [1] - High interest rates contribute to an erosion of home affordability, as higher mortgage rates reduce the number of people who can afford to own a home [1] - Solving the housing crisis presents an economic opportunity for companies in the real estate market [1] - Building more housing, regardless of type, is presented as a solution to drive down housing costs [2][4] - Increased housing supply leads to lower prices, following basic economic principles [2] Investment & Financial Markets - Open Door's stock price increased from around $0.50 per share to $9.37 per share [1] - Lenar's year-to-date performance is down 2%, Dr Horton's is up 6%, and NVR is down nearly 9%, while Pyroup is up nearly 13% this year [1] Economic Policy & Principles - Milton Friedman's recipe for economic success includes cutting government spending, restrained monetary policy, and eliminating regulations [16] - Cutting taxes and regulations, maintaining near-zero money supply growth, and stable monetary policy are advocated [17] - Free markets are considered better for the economy than government intervention [18] Warren Buffett's Investing Principles - Warren Buffett's average annual return is 20% since 1965, nearly double the S&P's average [6] - An $18 investment with Buffett would have grown to $750,000 by 2025, a return of over 5.5 million percent [6] - Timeless investing principles, as demonstrated by Warren Buffett, can lead to wealth [10]