Michael Burry of ‘The Big Short’ personal finance advice: Buy half the house you can afford

With rumors of a market bubble flying around, perhaps even more people than normal are tuning to trader Michael Burry’s takes on the economy. The investor became a household name after predicting and betting on the 2007 to 2008 subprime mortgage crisis, chronicled in the Hollywood blockbuster The Big Short.

Nearly two decades later, with question marks piling up over artificial intelligence valuations, Burry’s skepticism of market hype remains alive and well. He said last month that he believes the AI bubble “may burst sooner than later.”

And the caution Burry has exercised in his investment career appears to extend into his personal finance rules—and the advice he would give to others. Burry shared on his Substack, Cassandra Unchained, that he had been asked to give life advice to a 26-year-old, a Gen Z.

Burry had 10 pieces of advice. The first was to never stop exercising or learning; the second was to accept compromise in order to begin relationships. He also suggested manifesting the “power of compounding” and advised to “never gamble.”

He also advised having kids and being a good parent, and that if it “flies or floats, rent it” (put otherwise, if it is a plane or a boat, don’t buy it). Burry suggested to “be thankful for and to all,” and to “be charitable.”

Burry practices what he preaches: Every month his newsletter donates 5% of its revenues to a given charity. For October 2026, Burry announced the charity would be Siloam Health, a non-profit medical clinic that he “knows well” that supports uninsured, working poor, and newly arrived immigrants and refugees who do not qualify for government assistance.

“Art in the eye of the beholder is cheap” was another piece of advice shared by Burry. When a reader asked for clarification, Burry confirmed that it meant life and objects don’t necessarily need to be expensive—or have any cost attached—in order for them to be enjoyed.

Housing costs

Burry also advised to “buy half the house you can afford”—good advice for those seeking to avoid being trapped by large mortgage payments into working at jobs they don’t like.

And while the advice is aimed at younger people, who may not have yet built up the savings or salary to get on the property ladder, for many Americans—irrespective of their age—affording a home, or half of one, is impossible.

The latest housing affordability index from the National Association of Realtors (NAR) shows a reading of 105.4 for September 2026, the most up-to-date figure. A reading of 100 or more signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20% down payment. 

September’s reading therefore means the average family should, on average, be able to buy a home—but this varies a great deal depending on where in the country you’re looking. The indices for the Northeast and West are 91.5 and 77.9, respectively, this month, for example.

Moreover, the affordability index also takes into account all families, not necessarily first-time buyers. The NAR’s affordability index for these shoppers is far lower: 69.6 on average for 2026.

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