SkyBridge Capital‘s Founder Anthony Scaramucci said "the math doesn’t work" for Americans trying to buy a home, while Anthony Pompliano, CEO of ProCap Financial Inc. (NASDAQ: BRR), called rising home prices a "silent wealth transfer."
Scaramucci made the comments in a post on X, sharing a clip from his appearance on Channel 4 News’ "Ways to Change the World" podcast with host Krishnan Guru-Murthy.
Scaramucci said, "Median income in America: $83,000. Median home price: $400,000. The math doesn’t work. You can’t afford the house."
He said middle- and lower-income people are "skipping dental appointments, skipping doctor visits, and driving around with dented cars because they can’t risk the insurance premium going up." Scaramucci added: "It’s not getting better. It’s worsening."
Scaramucci said wealth in the U.S. is "very top heavy" and called the affordability squeeze "a big problem" that is "worsening."
On Tuesday, Pompliano said in a post on X that "It is insane that home values go up over time." He argued that a home "should be most expensive when it is initially built," adding, "A used home should cost less than a new home."
Pompliano said home prices "continue to grow to the sky because the debasement of the dollar distorts the market," calling it "a silent wealth transfer that requires the home buyer to pay more for a less valuable product."
The posts come as J.P. Morgan analysts said in a recent podcast that U.S. housing affordability is near its worst level since the global financial crisis and the market is effectively "frozen." John Sim, Head of Securitized Products Research, said buying a median-priced home would cost a renter roughly 50% of median income.
Bennett Parrish, from Economic and Policy Research at J.P. Morgan, said ownership among people under 35 fell from 39% in early 2022 to 35%, adding: "Incomes have simply failed to keep up."
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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