Michael Burry posted an open letter on Saturday on X arguing the U.S. housing crunch is less about a lack of homes and more about misallocated space, with federal policy and the long-running conservatorship of Fannie Mae and Freddie Mac at the center of his critique. The message landed alongside his long-running “Cassandra” posture—after years of blunt bubble alarms, account wipeouts and a “Lights Out” sign-off that fits the pattern described in Cassandra Unchained warning.
In his post, Burry said the U.S. already leads the world in residential square footage per person, which he argues undercuts the popular “shortage” framing. Instead, he points to large homes occupied by fewer people and a market where moving has become unusually hard.
Burry tied that rigidity to the post-pandemic rate backdrop, saying ultra-low borrowing costs effectively froze households in place. In his telling, empty nesters are reluctant to sell, first-time buyers are boxed out, and resale supply sits near historic lows because listings are scarce—not because demand is unusually strong.
How Policy Choices Are Distorting Housing Markets
His letter also leans on balance-sheet math: Burry wrote …
This post was originally published here
