Here's Your Fortune: The Real Reason You Can't Afford a Home...

Tomorrow’s Fortune

Welcome to the action-packed newsletter designed to help you navigate the world of business, investing, and technology. You owe it to yourself to stay informed! If you missed last week’s post, check it out here. 😎 

Today’s post is 2,000 words (~3 minutes). Reading this just might make you rich!

Today’s Digest: 

1. NEW VIDEO 👉🏼 The Home Affordability Crisis

2. Home Affordability Crisis: Why is it we can’t afford homes anymore?

3. Wanna Buy a Business? We found a high-profit contract manufacturing company ($600K of Cash Flow). Click HERE for the listing

4. Searching for a Side Hustle? Try making real estate walkthrough videos using a drone!

NEW KENNY FINANCE VIDEO ON YOUTUBE!

Find other cool videos on my channel HERE (👈 Click)

TOP STORY

Why America’s Most Affordable Cities Aren’t Affordable Anymore?

The Great Escape Is Ending

For decades, America had a backup plan.

If you couldn’t afford to live in New York or Los Angeles, you moved. To Phoenix. To Atlanta. To Dallas or Miami. These Sun Belt cities were fast-growing, high-opportunity, and—most importantly—affordable.

They were the release valve in an increasingly expensive country.

But that escape hatch is closing.

New research presented at the Brookings Papers on Economic Activity reveals something that’s been quietly building for two decades: the Sun Belt is starting to look a lot like the coasts. Prices are spiking. Construction has slowed. And America may be losing one of its last remaining engines of geographic mobility.

A Brief History of American Housing

In 1950, there were 36 million homes in the U.S. By 1980, there were 86 million.

We were building fast—adding millions of units each decade. This wasn't a coastal phenomenon. The Sun Belt led the way.

Phoenix grew its housing stock by over 9% per year in the 1970s. Atlanta, Dallas, and Miami weren't far behind. These cities had land, permissive zoning, and growing job markets. For families priced out of legacy metros, they offered a path to homeownership and wealth.

But around the year 2000, something shifted. Construction slowed. The number of new units added each year began to fall, not just in already supply-constrained cities like Los Angeles or San Francisco—but in the very places people moved to when those markets became unaffordable.

By the 2010s, the annual growth rate in Phoenix had dropped to just 1.0%. In Miami, even lower. That’s nearly the same pace as Los Angeles.

When Prices Break the Promise

For years, the Sun Belt’s pitch was simple: move here and you can afford a home.

But that affordability has eroded.

In Phoenix, inflation-adjusted home prices are now 2.5 times higher than in 1975. In Miami, 3.5 times. In Atlanta, long considered one of the most affordable major metros in the country, prices have surged past historical norms.

What happened? Harvard economist Edward Glaeser and Wharton’s Joseph Gyourko examined over 70 years of housing data. Their conclusion: the problem is supply.

It’s not just that mortgage rates are higher. Or that construction costs rose. It’s that we stopped building fast enough in the places where people want—and need—to live.

Why This Isn’t Just a Housing Story

When the coasts got expensive, people moved inland. That’s what made the American economy resilient. If jobs clustered in one city, workers could follow. But if no city remains both affordable and full of opportunity, that system breaks down.

As Gyourko put it in an interview with the Brookings Institution:

“It wasn’t so bad when the coasts became supply-constrained and incredibly expensive, because people could move to super-high-job-growth cities with affordable housing... If this goes away, it will be the first time in American history where we don’t have affordable housing markets with high job growth.”

That’s not a warning for would-be homebuyers. It’s a warning for the entire economy.

Fewer affordable cities mean fewer pathways to upward mobility. It means stagnation. It means that geography—once a ladder—becomes a wall.

The New Reality

Today, we’re living with the consequences of two decades of underbuilding.

High-growth metros are no longer safety valves. They’re pressure points. And unless cities find ways to reverse these trends—by reforming zoning laws, expanding infrastructure, and investing in scalable housing—we may be entering a new era of permanent housing stress.

For the first time in modern history, Americans may not be able to move toward opportunity.

That changes the story of this country…

BITS OF GOLD

• Market Volatility Intensifies Amid Escalating U.S.-China Trade Tensions - Global financial markets are experiencing significant turbulence following the U.S. administration's announcement of new tariffs on Chinese imports. In retaliation, China has imposed a 34% tariff on all U.S. imports, effective next Thursday. This tit-for-tat escalation has led to a sharp decline in major stock indices: the Nasdaq has plummeted over 5%, and the Dow Jones Industrial Average has dropped approximately 2,000 points, erasing about $6 trillion in market value by Friday afternoon. JPMorgan has raised the probability of a recession to 60%, reflecting growing concerns about prolonged economic strain due to these trade disputes.

• Federal Reserve Signals Caution in Response to Trade-Induced Inflationary Pressures - Federal Reserve Chair Jerome Powell has expressed concern over the potential for higher prices and weaker economic growth resulting from the recent tariff escalations. Speaking at a business journalism conference, Powell emphasized the Fed's intent to adopt a wait-and-see approach, refraining from preemptive interest rate adjustments until the tangible economic impacts of the tariffs become evident. This stance underscores the delicate balance the Fed must maintain between curbing inflation and supporting growth in the face of policy-driven economic shocks. ​

• Robust March Employment Report Highlights Pre-Tariff Economic Strength - The U.S. labor market demonstrated resilience in March, adding 228,000 jobs, surpassing economists' expectations of 140,000. This marks an increase from the 117,000 jobs added in February, indicating solid employment growth prior to the recent escalation in trade tensions. The unemployment rate edged up to 4.2%, suggesting a slight expansion in the labor force. While these figures reflect underlying economic strength, they may complicate the Federal Reserve's policy decisions amid rising inflationary risks from ongoing trade disputes.

• TikTok’s Forced Sale Sparks a Bidding War Among U.S. Tech Giants -

  The looming U.S. ban on TikTok has set off a frenzy among American firms vying to acquire the platform’s U.S. operations. According to The Wall Street Journal, potential buyers include Amazon, AppLovin, and other tech and private equity players, all racing to secure one of the most valuable digital assets in the country. The Biden administration is advancing legislation that would force Chinese parent company ByteDance to divest TikTok’s U.S. arm or face a national ban — a move driven by national security concerns over data access. While legal challenges could delay a sale, the message is clear: TikTok is no longer just a social app — it’s a geopolitical and commercial prize.

SO YOU WANT TO BUY A BUSINESS… 🏦

Deal of the Week: Portable Toilets (Florida) - Asking $1,950,000

Opportunity Overview

A high-precision CNC contract manufacturing firm in Florida is available for acquisition. With over 30 years in business and a portfolio of Tier-1 clients, this company specializes in high-volume, tight-tolerance machining for aerospace, medical, defense, and industrial sectors. Operating out of a 19,000 sq. ft. facility and staffed by 23 employees (including multiple seasoned machinists), the business offers an attractive mix of recurring revenue, mission-critical components, and a reputation for quality and reliability in regulated industries. The founder is looking to retire, creating an opportunity for a strategic or financial buyer to acquire a cash-flowing asset with embedded operational infrastructure and room for scale.

Cash Flow and Profitability

The business generated $4.0M in revenue and $1.0M in cash flow (25% margin) in 2023. The company operates leanly, with strong gross margins supported by long-term customer relationships and high machine utilization. It has a diversified customer base, though the medical and aerospace sectors account for a significant portion of sales — implying durable demand. Equipment on site includes over 25 CNC machines, all well-maintained and suitable for multi-shift operation. The facility is owned by the seller and is available for lease or purchase, offering flexibility depending on buyer preference. CapEx appears manageable with a recent equipment refresh, and there is no major reinvestment required to maintain current revenue levels.

What We Like

High-Margin Niche Manufacturing – With a 25% cash flow margin in a precision machining environment, this business demonstrates strong pricing power and cost discipline. Medical and aerospace clients typically require validated suppliers and recurring runs, reducing volatility and improving predictability of demand.

Asset-Rich and Ready for Scale – The company owns a deep bench of CNC machinery (worth $1M+ in FMV), much of which is underutilized. There’s opportunity to run a second shift, expand capacity, or cross-sell higher-margin parts to existing clients. No immediate CapEx required — rare for a business of this type.

Mission-Critical Components in Regulated Industries – Parts manufactured are not commodity products; they require certifications, documentation, and consistent tolerances. This makes customer switching costs high and adds natural barriers to entry for competitors.

Long-Tenured Team & Deep Tribal Knowledge – Multiple employees have been with the company for over a decade. There are experienced shop managers in place who can run day-to-day operations, allowing for a semi-passive or executive-level owner. A transition plan with the seller is also available.

Defensive Industry Exposure – Medical, aerospace, and defense clients typically operate on long product lifecycles with strict quality requirements and consistent demand, which protects against sudden revenue contractions. This makes the business well-positioned for downturn resilience.

What We Don’t Like

Owner Dependency in Customer Relationships – While the business is well-run, the seller likely holds key client relationships. Transition planning and relationship mapping are essential to avoid revenue erosion post-close.

Capacity Constraints Without Immediate Headcount Expansion – The company is operating near labor capacity. Any meaningful revenue growth may require hiring and training additional machinists — a difficult and time-consuming process in today’s skilled labor market.

No Proprietary Products or IP – The company is a contract manufacturer without proprietary designs or recurring royalties. That means no structural moat beyond relationships, certifications, and operational quality.

Potential Real Estate Risk – The seller owns the facility and has not committed to lease terms. A buyer would need clarity on whether the real estate will be leased, purchased, or possibly sold to a third party — which introduces risk around continuity and location disruption.

Customer Concentration Unknown – While the business has 15+ clients, we don’t know if a few customers represent the majority of sales. Heavy reliance on one or two OEMs could be a red flag.

Key Questions

1. What percentage of total revenue is derived from repeat production runs for established SKUs versus one-off prototype or short-run jobs, and how does that mix impact production efficiency and scheduling predictability?
   Understanding the ratio of repeatable, programmatic work versus bespoke jobs is critical — repeat runs drive higher margins and utilization, while one-offs typically create production friction, require more quoting, and dilute margin.

2. How embedded is the company within its top customers' supply chains, and what formal certifications, quality systems (e.g., AS9100, ISO), or supplier scorecards are in place that would make it difficult for clients to switch vendors?
   This goes to the core of the competitive moat. Stickiness with OEMs and Tier-1s is often based on quality performance, traceability, and regulatory certifications — not just price.

3. What is the shop’s true machine utilization rate by shift, and how much latent capacity exists to scale revenue without requiring meaningful investment in additional machines or floor space?
   A detailed look at spindle time, downtime, and run/setup ratios will reveal whether the business has room to scale under current infrastructure or if growth requires capital.

4. What are the gross margins by customer or part type, and how does complexity, material spec, or order volume correlate with profitability?
   In this business, not all revenue is created equal. Low-run aerospace parts might generate high headline revenue but eat up disproportionate labor hours or setup time. Profit concentration analysis is key to understanding margin durability.

5. What wage pressures and labor availability trends exist for skilled CNC machinists in the region, and what has been the historical success rate (and timeline) for recruiting, onboarding, and retaining high-skill talent?
   Labor is the real bottleneck in machining businesses. If growth depends on adding machinists, the local hiring environment and the shop’s ability to train and retain talent will determine how fast — or whether — scale is achievable.

WHAT ABOUT TODAY’S FORTUNE? SIDE HUSTLE OF THE WEEK 💸

Drone Videography for Real Estate: A High-Flying, High-Profit Side Hustle

If you’re into tech, media, or just want a side hustle that gets you outdoors and pays well, drone videography for real estate is one of the most lucrative, scalable plays in today’s creator economy. With more luxury real estate agents leaning on cinematic aerial footage to help listings stand out, demand is growing fast—and you don’t need a film degree to cash in.

🔥 Why Drone Videography for Real Estate?
Luxury homebuyers shop with their eyes—and that means real estate agents need visual content that wows. High-quality drone footage gives prospective buyers an emotional, cinematic perspective of a property—its scale, the neighborhood, landscaping, views. Listings with aerial footage command more views and higher perceived value. That makes you, the drone operator, a key partner in the home-selling process.

Plus, as more platforms (like Zillow and Instagram Reels) prioritize visual content, agents are increasingly investing in standout video. If you can offer smooth aerial shots, crisp interior transitions, and clean edits, you’re not just a videographer—you’re a growth lever for agents.

🛠️ Getting Started
Learn the Tech & Get Certified – Invest in a reliable drone (like a DJI Mini 3 Pro or Air 2S), learn basic flight and shooting techniques, and get your FAA Part 107 license if you’re flying commercially in the U.S.

Build a Starter Portfolio – Offer free or discounted shoots for a few local realtors to build a portfolio. Even 2–3 listings shot well will let you demonstrate your aesthetic, editing chops, and drone piloting.

Pitch Local Agents – Walk into brokerages with a one-pager and demo reel, or DM realtors on Instagram with a clean before/after of your work. Once you get your first few clients, word-of-mouth will take over.

💰 Startup Costs & Capital Intensity
Initial Investment: $800–$1,500
(Cost of a high-quality drone, basic editing software like DaVinci Resolve or Final Cut, FAA certification)

Ongoing Costs: Minimal
Battery replacements, occasional maintenance, and editing software subscriptions

Time Commitment: Low
Most shoots take 1–2 hours onsite plus 2–3 hours of editing. With repeat clients, turnaround time improves.

📈 How to Scale & Maximize Profits
Package Services – Offer tiered pricing: basic aerials only, full interior + exterior drone walkthrough, or full cinematic edits with text overlays and branding.

Build Monthly Retainers – Pitch brokerages or top-performing agents on a monthly content package that includes 2–4 listings per month. Stable, recurring revenue.

Add Interior Walkthroughs – Use a gimbal camera to offer seamless interior video tours to complement your drone footage.

Expand into Adjacent Markets – Once you master real estate, upsell your services for events, golf courses, commercial real estate, or luxury rentals.

💵 Earning Potential
Drone shoots typically range from $250–$1,000+ per property, depending on footage length, edits, and market.

Shooting 10 listings/month at $500 each = $5,000/month
Build relationships with top producers or boutique luxury brokerages and scale into $6–10K/month in part-time work.

For creatives who love beautiful visuals, real estate, and modern tech, drone videography offers a high-margin, high-demand side hustle. Start with one drone, one agent, and one listing—and take your income to new heights.

This newsletter is for informational purposes only and does not constitute investment advice. The content is based on publicly available information, and the author makes no representations about its accuracy or completeness. Readers should conduct their own research before making any investment decisions.