NVR - Housing industry has long-term fundamental supply/demand imbalance - Black Bear's Adam Schwartz

mphillips007/iStock Unreleased via Getty Images Adam Schwartz, founder and chief investment officer at Black Bear Value Partners, said in a fund letter that he sees a long-term fundamental supply/demand imbalance in the housing industry, leading the fund to make a big bet on the sector. Black Bear currently has holdings in NVR Inc. (NVR) and two other housing-related stocks that the company declined to identify, according to a fund letter released this week. Schwartz argued that underproduction of new homes and a "challenging" environment for mortgage financing in the wake of the Great Recession has created a lack of supply. At the same time, the housing market faces a generational shift, as millennials "enter the family-phase of life and desire more space," he noted. Recent conditions have also fueled a hot housing market, the Black Bear CIO said, with rates hovering near historic lows and the work-at-home trend prompting many

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Housing industry has long-term fundamental supply/demand imbalance - Black Bear's Adam Schwartz