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In the Lead: Best Women-Owned Businesses

 Summary

  • In the lead honors 28 majority women-owned
  • Winners span industries like tech, manufacturing, and racing.
  • Businesses have at least four employees and four years of operation.
  • Leaders share insights on capital challenges and career pivots.

In this feature, Virginia Business recognizes a stellar group of 28 majority women-owned, women-run businesses that employ at least four full-time employees and have been in business for at least four years.

Winners were selected from a pool of nominations from our readers and editors. Many of our winning CEOs, founders and presidents answered questions about how they beat the odds in attaining capital and keeping their companies going during difficult times, as well as the values they pass on to their employees. Often, these businesses represent pivots after long careers in the private and public sectors, sometimes after a layoff or a change in their personal lives. All these businesses — whether tech , government contractors, manufacturers or a racetrack — are certainly worth knowing about and celebrating.

Congratulations to these varied businesses and the strong women owners and founders who have made them successes!

Bowker

Amivero

Founder and CEO Olivia Trivisani Bowker,

Amivero, a federal IT contractor started in 2018, won a $100 million prime federal contract with the Department of Homeland Security and increased its revenue by 21.5% in 2024. Bowker was named one of Inc.’s 500 this year.

How I support women: Within Amivero, we maintain 50% female employment and prioritize internal advancement opportunities. I have mentored first-year female CEOs and speak at women’s leadership conferences.

Top accomplishments: We’ve built four proprietary technical frameworks while expanding into new markets. Our $100 million contract with DHS beat 26 bidders. We’ve secured three sole-source contracts, added the Department of Transportation to our client list and obtained $44 million in over 18 months.

Manoj

AttainX

President and CEO Sheryll Manoj, Herndon

Launched in 2008, AttainX is a federal contractor that specializes in defense and civilian tech work, including cybersecurity, IT, artificial intelligence and business services. In December 2024, Gov. Glenn Youngkin announced that AttainX planned to invest $175,000 to expand its operations in Fairfax County and create 32 jobs, with the support of the Virginia Jobs Investment Program.

“With this support, we’re poised to attract and employ talent in Fairfax County, contributing to the economic and technological growth of Virginia,” Manoj said in a statement. Among AttainX’s customers are the Air Force, the Department of Energy and the Department of Agriculture, which awarded the company a $107 million contract in 2023 to modernize its farm loan programs.

Reddix

ARDX

Founder and CEO Angela Reddix, Norfolk

Founded in 2006, ARDX provides health care management and IT solutions and employs more than 100 people. In 2022, Reddix sold the company to her employees through an employee stock ownership plan (ESOP), making it a 72% women-owned business. She remains its CEO.

How I support women: Through the ARDX Foundation, we’ve hosted the Women’s Wellness Celebration for about 15 years, serving 200-plus women annually with powerful educational sessions to make mental wellness a top priority.

Keys to success: An early investment in quality and continual improvement. We’ve created a safe space for reporting weaknesses. Our entire is trained on how to identify and eliminate inefficiencies and waste.

Petrazzuolo

Avanti

President and CEO Lynn Petrazzuolo,

Founded in 1990, Avanti provides environmental science and engineering services to federal and state clients. It employs 30 people and reported $6.9 million in revenue last year.

Challenges I’ve faced: It took a while to get a seat at the table with the large, male-run companies in our field, and for male counterparts to deal directly with me. Even the banks wanted my husband involved in lending discussions.

Top accomplishments: Avanti had our largest growth year ever in 2024, with over 50% growth in staff and revenue. We successfully implemented an Environmental Protection Agency $3.5 million pilot project to help 20 communities find, inventory and secure funding for the replacement of lead drinking water lines.

Oberoi

C2 Technologies

CEO Dolly Oberoi, McLean

A tech business that provides online learning services for aerospace and defense clients, C2 is a prominent government contractor that has won several industry awards and secured more than 200 contracts worldwide. Oberoi herself was a regional finalist for Ernst & Young’s Entrepreneur of the Year award in 2011.

Founded in 1989, C2 employs more than 500 people and has operations in more than 37 locations around the globe. Clients include the Department of Defense, international military forces and other federal agencies.

Speaking with Virginia Business in 2023, Oberoi said, “If you are confident in your domain expertise and ability to lead, there shouldn’t be barriers.”

Lennick

Creative

Owner and CEO Debbie Lennick, Ashland

A commercial furniture and tech solutions company, Creative was started in 1995 and employs 88 people. Keys to success: Surround yourself with smart, innovative people. Share your ideas and perspectives regularly and create that reciprocal relationship with those on your team. We are not built off the back of one person, but of many.

Do women founders receive enough support? I believe there is still significant opportunity for greater resources for female leaders. The value of mentorship, shared experienced and collaboration among female leaders is immense, but the space to foster those deep, meaningful connections often feels limited.

Gupta

Electrosoft Services

CEO Sarbari Gupta, Reston

A cybersecurity firm with federal civilian and defense customers, Electrosoft was founded in 2001 by Gupta and recorded $55.1 million in revenue last year. Electrosoft employs 192 people.

How I support women: I’ve mentored women via the Women in Technology Mentor-Protégé program and students through the Girls in Technology mentorship program. I’ve served as a STEM and computer science teacher, volunteering for programs targeting children from low-income families.

Why I decided to start my business: My early career positioned me in leading technology companies founded by bold entrepreneurs. At that time, founding my own firm seemed like a pipe dream. Several years later, a voluntary but unplanned break in employment inspired me to establish a business. I gave myself two years to succeed.

Franco

Global Metal Finishing

President and CEO Tamea Franco, Roanoke

Specializing in aluminum anodizing and coating, Global Metal Finishing was started in 1987 and employs more than 40 people.

Keys to success: I’m a driver and a hard one at that. People who have worked with me see how important it is to make sound decisions and make them quickly.

Why I started my business: I devised an idea to anodize and color aluminum components, sheets, tubes, wire shapes and discs to sell to metal artists. I courted two leading distributors to present my product line, and they shot me down. East West DyeCom was born in my basement, and 15 years later, I redesigned the company to become a leading supplier to industries in the mid-Atlantic.

Baum

GuernseyTingle

Principal and Board Chairman Kristin Baum, Williamsburg

Started in 1983, GuernseyTingle is a top architecture and design firm in Hampton Roads, co-owned by seven principals that include four women.

What it means to lead a women-owned business: It is an opportunity to drive meaningful change in a historically male-dominated industry. It means fostering an inclusive culture where diverse voices are valued, and women have a clear path to leadership.

Top accomplishments: We earned Women-Owned SWaM certification in 2024. We’ve secured high-profile projects, won design awards and strengthened our legacy of community-focused architecture. Our revenue and client base continue to grow, and we’ve launched initiatives like GT Gives Back to further support nonprofits.

Snyder

KlariVis

Founder and CEO Kim Snyder, Roanoke

A former Valley Bank chief financial officer, Snyder started KlariVis, a banking software company, in 2019. Noting that small community banks like the one where she worked “grapple with a daunting data dilemma, navigating through vast amounts of siloed data in disparate systems,” Snyder has raised $25 million in capital and hired more than 60 employees at her startup.

Speaking with Virginia Business last year, Snyder said, “Being a woman in fintech and banking requires creativity and resilience.”

Wilson

Naborforce

Founder and CEO Paige Wilson, Richmond

In 2018, Wilson started Naborforce, a platform that connects seniors to “nabors” who can be hired for light tasks and companionship. It employs 11 full-time workers and 1,500 contractors.

Why I started my business: I launched Naborforce after my experience caring for my aging mother. Twelve years ago, she broke her hip and started needing little bits of help — simple things like getting to the beauty parlor. I started to look for backup, only to find there was a big gap.

Growth strategies: Our goal is to become a trusted national brand, and we are well on our way. We’ve built a highly scalable technology platform and have developed solid, repeatable processes.

Pollack

Nightingale Ice Cream

President, CEO and Co-founder Hannah Pollack, Richmond

A gourmet ice cream sandwich company, Nightingale was co-founded in 2016 by Pollack and husband Xavier Meers, both chefs. Now their products are sold in Kroger nationwide.

What it means to lead a woman-owned business: I love this company and take immense pride in leading our incredible team with heart, purpose and passion every day. Being a woman at the helm allows me to champion inclusivity and empower others.

A business mistake I learned from: As we were planning our growth, an adviser gave bad advice that I took. I’ve learned to dream big, trust my gut and go after what I know this company can achieve.

Top accomplishments: We grew from $50,000 in sales our first year to $20 million this year, and from one employee to a team of 100. We’ve expanded nationwide, launched new product lines and exceeded growth goals year-over-year.

Saleh

Oryx Dental Software

Founder and CEO Dr. Rania Saleh, McLean
Saleh is a dentist who founded her cloud-based dental practice management company in 2015, helping other dentists run their businesses with analytics and AI tools.

Why I started my business: I was a practice owner and dental surgeon when I became pregnant with twins, which put me on bed rest. During this time, I realized that the systems and workflow I had implemented weren’t being maintained during my leave. That’s when I envisioned Oryx, a system designed to keep practices running smoothly, even when you have to step away.

Challenges for women founders: Disparities in access to funding and resources compared to their male counterparts. To change this, there should be greater investment in women-led businesses, more inclusive networks and mentorship programs.

Hardesty

Poppy

Founder and CEO Cameron Hardesty, Charlottesville
A digital-first wedding florist business, Poppy was founded in 2019 by Hardesty and employs 25 people.

Challenges I’ve faced: Investors back problems they understand, and many women-led solutions aren’t obvious to them. For example, wedding planning is a major pain point, but if an investor hasn’t experienced it firsthand, they may overlook its market potential.

Top accomplishments: Since March 2021, we’ve grown bookings revenue 16.6 times and recently hit our biggest sales day ever with $320,000 in bookings. We’ve vetted 1,000-plus independent floral designers, expanding our network. Plus, we’ve significantly improved our gross margin year over year, nearly reaching our 2024 goal.

McCann

Procure Impact

Co-founder and CEO Lauren McCann, Falls Church

Started by McCann and two business partners, President Jen Collins and Managing Director Laura DeFrancesco Ross, Procure Impact is a B2B marketplace that lets hospitality businesses purchase responsibly made goods from vendors from underserved populations, including people with disabilities, trafficking survivors and veterans. Named one of Inc.’s Female Founders 500 in March, McCann has guided her company to 200% revenue increases year-over-year.

In partnership with the American Hotel and Lodging Association, Procure Impact launched the Dignity of Work Pledge to create shift work for people with barriers to employment. It also was named one of Fast Company’s World’s Most Innovative Companies in March.

Rabbitt

Rand Construction

Founder and Executive Chairman Linda Rabbitt, Alexandria
Founded in 1989, Rand is a national general contractor with $608 million in revenue in 2024 and 356 employees. Rabbitt started the firm after co-founding a construction company in 1985.

Challenges I’ve faced: It took time for the industry to accept a woman who had two college degrees but none in a construction-related field. But nothing was more difficult than the tragic passing of our president, Jon Couch, 10 years ago, who was to be my successor.

Growth strategies: Our growth has always been a result of our drive to be the very best in each of our local markets, with an eye toward continued national expansion. Our ability to foster long-term partnerships is due to our culture of extraordinary client service.

Thomas

RMT Construction & Development Group

President and Chief Financial Officer Starlena Thomas, Chesterfield County
RMT is a construction management and development firm that was started in 2007. It employs 25 people and reported $22 million in revenue in 2024.

Challenges I’ve faced: Earning trust in a male-dominated field means proving expertise through results, not assumptions. Access to key networks and opportunities requires persistence and strategic relationship-building.

Top accomplishments: RMT has achieved notable growth, completing 100-plus projects annually while expanding our team and increasing revenue every year. In 2022, we made national news for building Virginia’s first 3D-printed home, constructed in Richmond. In 2024, we partnered with Breeden Construction on a $40 million parking deck at U.Va.

Kincaid

RVA Hospitality

CEO Liz Kincaid, Richmond

Started in 2010, RVA Hospitality is a restaurant that owns four Richmond-area restaurants and employs 180 people. In 2024, it reported $7.1 million in revenue.

How I support women: Whether it’s sharing real profit and loss numbers, owning up to performance gaps or just grabbing coffee with another woman founder, I believe in honest, ongoing connection.
Do women founders receive enough support? I don’t think they do. There are so many great programs out there now — from accelerators to SBA or SBSD business courses — but you have to know they exist and be willing to jump in. Joining a women-led group within your industry or seeking out peer networks can be a gamechanger.

Ropp

 

SFS Tools and Safety

President Danielle Ropp, Harrisonburg
Founded in 1983 as Special Fleet Service, SFS tests protective rubber for commercial power line workers, as well as selling specialized tools for the electric utility industry. Ropp is the daughter of SFS’ original owner and bought the business in 2019.

A business mistake I learned from: Using national companies for services. The best change we’ve made is to source all things locally. Small local businesses thrive when they support each other.

How I support women: Our company is made up of almost 50% women, most of whom are mothers. It’s important to me to give them a company that understands the challenges they face and helps them keep a successful career while being able to be a present mother.

Spurrier

Spurrier Group

Founder and CEO Donna Spurrier, Richmond
A media marketing business founded in 1996, Spurrier Group employs 20 people and recorded $6.9 million in revenue in 2024. It has twice been named to the Inc. 5000 list of the nation’s fastest-growing businesses.

Why I started my business: I was the media director at an agency that invented and was handling all the Toyotathon business in the U.S. I went to the creative team and asked them what the motivation was for them to put a Toyota in their driveway. I was told to go back to my corner and buy the media. It was at that moment that I realized there was a better way — a way the creative and media could both benefit from a more collaborative approach.

Bowe

STEMBoard

FOUNDER AND CEO Aisha Bowe, Arlington County
Bowe literally flew into the stratosphere in April as one of six female crew members on Blue Origin’s New Shepard spaceflight program. A Bahamian-American entrepreneur and former NASA engineer, Bowe started STEMBoard, a tech company that advises federal agencies, in 2013. In 2020, it landed on the Inc. 5000 list of the nation’s fastest-growing companies. In 2022, Bowe launched Lingo, a self-paced coding kit that’s used by more than 5,000 students in 10 countries.

In addition to its headquarters in Arlington, STEMBoard has operations in Maryland, Florida, New Mexico and Washington, D.C.

Robertson

TECHnista

CEO Kelsey Robertson, Pittsylvania County
Started in 2021, TECHnista is a K-12 defense manufacturing curriculum developer that is establishing a national training and tech center in Southern Virginia, part of a five-year Department of Defense contract.

Top accomplishments: Over the past year, TECHnista has grown exponentially. The business went from operating out of a spare room in my home to a 12,000-square-foot facility with 11 full-time employees, with plans to continue to grow.

Why I started my business: I decided to start my business after leaving my teaching career to focus on my growing family. I realized there was an opportunity to combine my passion for education with a desire for more flexibility.

Stuart

Top Guard Security

President Nicole Stuart, Norfolk
Started in 1996, Top Guard employs 1,000 security professionals and support staff. It has been recognized for hiring military veterans, and Stuart received a 2024 Virginia Award from Virginia Business.

Top accomplishments: Surviving in an industry with only a few mammoth firms, breaching the 900- and then 1,000-staff member marks, and doing it all without having purchased or acquiring another firm.

Secret to finding good employees: Your immediate supervisor has the single greatest effect on how a person feels about their employment. Supporting leaders at all levels of the company is truly the single greatest factor in retaining wonderful staff.

Vasques

Tribal Tech

Owner and Chairwoman Victoria Vasques, Alexandria
A Native American-owned small business, Tribal Tech provides professional services to federal, state, local, tribal and private sector businesses. It was founded in 2010 and employs 150 people.

Top accomplishments: A successful acquisition of Cowan & Associates in 2019. Cowan serves the national security and defense sectors. Since then, Tribal Tech has increased our staff, revenue and capabilities.

Keys to success: Our guiding principles are people, performance and partnership. We create an environment where our employees can thrive professionally, and our clients can fully benefit from our expertise and capabilities.

Simkins

Velvet Suite

President and CEO Melissa Dawn Simkins, Reston
Started in 2006, Velvet Suite is a firm that advises clients on hiring and developing talented leaders. An Inc. 5000 honoree, it has four full-time employees and 10 contractors.

How I support women: I’m deeply committed to cultivating the next generation of leaders. Through our platform, She-Suite, we’ve supported the retention, development and advancement of thousands of women across more than 28 countries.

A turning point: Our first major breakthrough came when we partnered with the NFL to create the first-ever Player Brand University for NFL rookies. This program fused the mindset of elite athletes with the strategic insights of top business leaders — laying the foundation for a transformative approach to leadership development.

Nyholm

Virginia International Raceway

Co-owner and CEO Connie Nyholm, Alton
A Martinsville native, Nyholm helped resurrect the VIR racetrack in 1998 with business partner Harvey Siegel. Today, it’s one of the nation’s premier road courses and welcomed a record 350,000 fans last year.

What it means to lead a woman-owned business: Women-owned racetracks are nearly nonexistent, so it’s an honor to carry the flag. I get to create a space where everyone, regardless of gender, feels empowered to succeed.

Keys to success: Versatility is a major component to longevity when it comes to businesses. We will pass this grand lady to someone else one day, but I fully plan to continue my portion of VIR’s legacy and pass the torch when the time is right.

Whitney

Warren Whitney

Co-founder, Owner and Director Katherine Whitney, Henrico County
A finance, accounting and HR firm, Warren Whitney was started in 1989 and employs 31 people. Whitney co-founded the company
with Scott Warren, whom she worked with at RSM.

Strategies for growth: We invest heavily in marketing and business development, and we look for talented professionals who want to build practices they enjoy.

Do women founders receive enough support? I believe that they do now, but that may be because my career in business started not very long after women were first allowed to take out a loan without having a man sign for her. I am forever grateful for the women who made my career possible and easier than theirs was.

Banziger

xScion Solutions

Founder and CEO Alison Banziger, McLean
A company that has found customers by focusing on “regtech,” short for regulatory technology, xScion was started in 2002 after Banziger was laid off.

Today, the company has been named one of Virginia Business’ Best Places to Work for eight years running, and Banziger herself was a Virginia Business Women in Leadership Award winner in July 2024.

xScion specializes in agile, cloud and other IT products for clients in financial services, health care, associations and the public sector, and Banziger said in a 2024 interview with Virginia Business that the company set a goal of offering the value of Big 5 consultants without the price tag. ■

Who is Greg Abel, the executive picked to be successor to Warren Buffett?

SUMMARY:

  • will take over as CEO of in 2025.
  • Abel has overseen major Berkshire subsidiaries since 2017.
  • Known for strategic thinking and integrity, Abel is Buffett’s chosen successor.
  • Abel plans to uphold Berkshire’s decentralized, trust-based culture.

, Neb. (AP) — When Warren Buffett announced at his annual Saturday that he is stepping down as CEO of Berkshire Hathaway at the end of the year, he elevated a low-key 62-year-old Canadian executive named Greg Abel who has long been one of his top lieutenants.

For the past seven years, Abel has been overseeing Berkshire’s BNSF railroad and its treat makers See’s Candies and Dairy Queen along with dozens of other manufacturing and retail businesses that Buffett acquired over the years.

He grew up in Canada as a hockey player and learned the value of hard work as he redeemed discarded bottles and worked for a small company filling fire extinguishers. Now he finds himself at the top of the food chain in the investment world.

Berkshire confirmed Abel as Buffett’s successor in 2021 after former Vice Chairman Charlie Munger let it slip at the . Since then, Abel has largely remained in Buffett’s shadow although shareholders have had a chance to get to know him a bit when he appeared alongside Buffett at the annual meetings and in interviews.

Berkshire’s board will now vote on whether to formally approve Abel as the new CEO to take over at the end of 2025. At the annual meeting in Omaha, Buffett said he expects that to occur by a unanimous vote.

Abel will step forward to take responsibility for all of Berkshire’s eclectic assortment of businesses with their nearly 400,000 employees and the ‘s massive stock portfolio. Buffett and members of Berkshire’s board who for years have devoted much of their time to finding Buffett’s successor have praised Abel’s brilliance and knack for understanding all kinds of businesses.

Buffett once said Berkshire is “so damn lucky” to have Abel ready to take over, but he will have trouble coming close to Buffett’s remarkable track record of outpacing the market. Whereas Buffett grew Berkshire over the decades by making well-timed deals and stock investments at attractive prices, Berkshire’s massive size has made it that much harder lately to find anything big enough to change the conglomerate’s bottom line.

Abel has big shoes to fill, but no one expects him to match the accomplishments of Buffett that made him a billionaire many times over and one of the wealthiest investors of the past century. Longtime Berkshire board member Ron Olson said two days before the announcement that he believed Abel was ready to take over.

“Is he another ? No, there is no other Warren Buffett that I know. But he has so many of the fundamentals of Warren,” Olson said. “He is for sure high integrity. He is a hard worker. He is a strategic thinker.”

Buffett has said for years that Abel’s main job when he becomes CEO will be to preserve Berkshire’s unique decentralized culture built on independence, integrity and trust. In fact, Munger’s comment that gave away Abel’s future role was that “Greg will keep the culture.”

Executives at a diverse mix of Berkshire subsidiaries, including sneaker maker Brooks Running, flooring giant Shaw and Borsheims jewelry have said they all turn to Abel whenever they face tough questions in their businesses related to strategy or operating details, and he’s always available when they need him though he will challenge them.

“When I think about Greg, he not only has high business acumen, but he has really high business instincts,” Dairy Queen CEO Troy Bader said Friday. “The intuition is really important. And, you know, Warren has that intuition, but Greg has a lot of it as well.”

Abel has never done many interviews, though he put his detailed business knowledge on display at the Berkshire meetings when discussing utilities and the railroad. But he did offer a glimpse into his background to the Horatio Alger Association when that group honored him in 2018.

Abel’s family-oriented upbringing in Edmonton, Alberta, and lessons in hard work and perseverance were similar to what Buffett learned while working in his grandfather’s Omaha grocery store as a kid.

“I think hard work leads to good outcomes. In my schooling, in sports, and in my business positions, I learned that if I put in a lot of work and was well-prepared, then success would be more likely,” Abel said in 2018.

Abel lives about two hours from Buffett’s hometown in Des Moines, Iowa, where he has led Berkshire Hathaway Energy since 2011 and helped coach his kids’ hockey and soccer teams. He is expected to continue living there because Berkshire is so decentralized that there is little reason to move to its Omaha headquarters. Buffett only had a couple dozen people working in his office as he spent his days reading business reports and making the occasional phone call.

Warren Buffett shocks shareholders by announcing his intention to retire at the end of the year

SUMMARY:

 

, Neb. (AP) — Billionaire Warren Buffett shocked an arena full of shareholders Saturday by announcing that he will retire at the end of the year, bringing the curtain down on a six-decade run leading Berkshire Hathaway that made him the most influential investor in the world.

Buffett said he will recommend to Berkshire Hathaway’s board on Sunday that Vice Chairman Greg Abel should replace him.

“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett said.

Abel has been Buffett’s designated successor for years, and he already manages all of Berkshire’s noninsurance businesses. But it was always assumed that he would not take over until after Buffett’s death. Previously the 94-year-old Buffett always said he had no plans to retire.

Buffett announced the news at the end of a five-hour question and answer period without taking any questions about it. He said the only board members who knew this was coming were his two children, Howard and Susie Buffett. Abel, who was sitting next to Buffett on stage, had no warning.

Abel returned an hour later without Buffett to conduct the company’s formal business meeting, and he responded to the news.

“I just want to say I couldn’t be more humbled and honored to be part of Berkshire as we go forward,” Abel said.

Many investors have said they believe Abel will do a good job running Berkshire, but it remains to be seen how good he will be at Berkshire’s cash. Buffett endorsed him Saturday by pledging to keep his fortune invested in the company.

“I have no intention — zero — of selling one share of Berkshire Hathaway. I will give it away eventually,” Buffett said. “The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.”

Thousands of investors in the Omaha arena gave Buffett a prolonged standing ovation after his announcement in recognition of his 60 years leading the company.

During that period Berkshire nearly doubled the returns of the , with a 19.9% compounded annual growth rate compared with the index’s 10.4% gain.

Buffett had such a devoted following among investors that markets would move when his investments were disclosed because so many people copied him.

CFRA research analyst Cathy Seifert said it had to be hard for Buffett to decide to step down.

“This was probably a very tough decision for him, but better to leave on your own terms,” Seifert said. “I think there will be an effort at maintaining a ‘business as usual’ environment at Berkshire. That is still to be determined.”

Abel expected to do well

In many respects, Abel has already been running much of the company for years. But he hasn’t been managing Berkshire’s insurance operations or deciding where to invest all of its cash. He will now take those tasks on, but Vice Chairman Ajit Jain will remain to help oversee the insurance companies.

Investment manager Omar Malik of Hosking Partners in London said before Buffett’s announcement that he wasn’t worried about Berkshire’s future under Abel.

“Not really (worried). He’s had such a long time alongside Warren and a chance to know the businesses,” Malik said about Abel. “The question is will he allocate capital as dynamically as Warren? And the answer is no. But I think he’ll do a fine job with the support of the others.”

Cole Smead of Smead Capital Management said he wasn’t surprised Buffett is stepping down after watching him Saturday because the 94-year-old wasn’t as sharp as in past years. At one point, he made a basic math mistake in one of his answers. At other points, he got off track while telling stories about Berkshire and his investing without answering the question he was asked.

Abel is well regarded by Berkshire’s managers and Buffett has praised his business acumen for years. But he will have a hard time matching Buffett’s legendary performance, and since he doesn’t control 30% of Berkshire’s stock like Buffett does, he won’t have as much leeway.

“I think the challenge he’s going to have is if anyone is going to give him Buffett or (former Vice Chairman Charlie) Munger’s pass card? Not a chance in God’s name,” Smead said. Buffett always enjoyed a devoted following among shareholders.

Buffett has said that Abel might even be a more hands-on manager than he is and get more out of Berkshire’s companies. Managers within the company say they have to be well prepared before talking to Abel because they know he will ask tough questions.

Steven Check, president of Check Capital Management, said he never thought he would see Buffett retire.

“I didn’t think he would retire while his mind is still working so well, nor did I think it’d happen at the annual meeting,” Check said. “But overall I’m very happy for him.”

Buffett earlier warned that Trump’s were harmful

Earlier Saturday, Buffett warned of dire global consequences from President Donald Trump’s tariffs while telling the thousands of investors gathered at his annual meeting that “ should not be a weapon” but “there’s no question that trade can be an act of war.”

Buffett said Trump’s trade policies have raised the risk of global instability by angering the rest of the world.

“It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” Buffett said as he addressed the topic on everyone’s mind at the start of the Berkshire Hathaway shareholders meeting.

While Buffett said it is best for trade to be balanced between countries, he doesn’t think Trump is going about it the right way with his widespread tariffs. He said the world will be safer if more countries are prosperous.

Market turmoil doesn’t create big opportunities

Buffett said he just doesn’t see many attractively priced investments that he understands these days, so Berkshire is sitting on $347.7 billion in cash, but he predicted that one day Berkshire will be “bombarded with opportunities that we will be glad we have the cash for.”

Buffett said the recent turmoil in the markets that generated headlines after Trump’s tariff announcement last month “is really nothing.” He dismissed the recent drop as relatively small. He cited when the Dow Jones industrial average went from 240 on the day he was born in 1930 down to 41 during the Great Depression as a truly significant drop in the markets. Currently the Dow Jones Industrial Average sits at 41,317.43.

“This has not been a dramatic bear market or anything of the sort,” he said.

Buffett said he hasn’t bought back any of Berkshire’s shares this year either because they don’t seem to be a bargain either.

Investor Chris Bloomstran, who is president of Semper Augustus Investments Group, told the Gabelli investment conference Friday that a financial crisis might be the best thing for Berkshire because it would create opportunities to invest at attractive prices.

“Berkshire needs a crisis. I mean Berkshire thrives in crisis,” Bloomstran said.

Berkshire meeting attracts thousands

The meeting attracts some 40,000 people every year who want to hear from Buffett, including some celebrities and well-known investors. This year, Hillary Rodham Clinton also attended. Clinton was the last candidate Buffett backed publicly because he has shied away from politics and any controversial topic in recent years for fear of hurting Berkshire’s businesses.

One investor even camped outside the arena overnight to be first in line.

Devan Bisher, 72, said he has faith in Berkshire’s future and does not plan to sell the stock he started buying in the 1980s.

“It’s been a good train to ride,” Bisher said, “and I’m going to stay with it.”

Buffett says US shouldn’t use ‘trade as a weapon’ as Trump has done with tariffs

SUMMARY:

  • Buffett says using as a weapon is a major U.S. mistake
  • Berkshire holds $347.7B in cash, sees few buying opportunities
  • Annual draws 40,000 attendees, including Clinton
  • Buffett supports as successor, but has no plans to retire

, Neb. (AP) — Investor told thousands of shareholders Saturday that the United States shouldn’t use “trade as a weapon” and anger the rest of the world like President Donald Trump has done with his that roiled global markets..

“It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” Buffett said as he addressed the topic on everyone’s mind at the start of the shareholders meeting.

While Buffett said it is best for trade to be balanced between countries, he doesn’t think Trump is going about it the right way with his widespread tariffs. He said the world will be safer if more countries are prosperous.

“We should be looking to trade with the rest of the world. We should do what we do best and they should do what they do best,” he said.

America has been going through revolutionary changes ever since its birth and the promise of equality for all, which wasn’t fulfilled until years later, Buffett said. But nothing that is going on today has changed his long-term optimism about the country.

“If I were being born today, I would just keep negotiating in the womb until they said, ‘You could be in the United States,’” Buffett said.

Market turmoil doesn’t create big opportunities

Buffett said he just doesn’t see many attractively priced investments that he understands these days, so Berkshire is sitting on $347.7 billion in cash, but he predicted that one day Berkshire will be “bombarded with opportunities that we will be glad we have the cash for.”

Buffett said the recent turmoil in the markets that generated headlines after Trump’s tariff announcement last month “is really nothing.” He dismissed the recent drop in the market because he’s seen three periods in the last 60 years of managing Berkshire when his company’s stock was halved. He cited when the industrial average went from 240 on the day he was born in 1930 down to 41 during the Great Depression as a truly significant drop in the markets. Currently the Dow Jones Industrial Average sits at $41,317.43.

“This has not been a dramatic bear market or anything of the sort,” he said.

Buffett said he hasn’t bought back any of Berkshire’s shares this year either because they don’t seem to be a bargain either.

Investor Chris Bloomstran, who is president of Semper Augustus Investments Group, told the Gabelli investment conference Friday that a financial crisis might be the best thing for Berkshire because it would create opportunities to invest at attractive prices.

“I’m sure he’s praying that the gets worse. He won’t say that publicly, but Berkshire needs a crisis. I mean Berkshire thrives in crisis,” Bloomstran said.

Berkshire meeting attracts thousands

The meeting attracts some 40,000 people every year who want to hear from Buffett, including some celebrities and well-known investors. This year, Hillary Rodham Clinton also attended. Clinton was the last candidate Buffett backed publicly because he has shied away from politics and any controversial topic in recent years for fear of hurting Berkshire’s businesses.

Haibo Liu even camped out overnight outside the arena to be first in line Saturday morning. Liu said he worries that this year could be Buffett’s last meeting since he is 94, so he made it a priority to attend his second meeting.

“He has helped me a lot,” said Liu who traveled from China to attend. “I really want to express my thanks to him.”

Worries about replacing Buffett

Shareholder Linda Smith, 73, first learned about Warren Buffett and Berkshire Hathaway when she rented a room from his sister, Doris, while she was a graduate student in Washington D.C. Smith said Doris came home from an annual meeting not long after Berkshire bought See’s Candy and told her she had to buy the stock.

Smith couldn’t buy it immediately because the price of a single share was selling for about $3,400 and that was equal to her income as a grad student. But as soon as she got a job after college, she took her friend’s advice and began saving up to buy some of the stock that now sells for $809,350.

Over the years, Smith estimates she has probably attended about 20 annual meetings — often bringing a friend.

“I really like to listen to Warren Buffett — particularly this year with everything that has happened,” Smith said.

Buffett has long said he has no plans to retire because he enjoys figuring out where to invest Berkshire’s money too much. He plans to continue working until he dies or becomes incapacitated. But he remains in good health even though he does use a cane, and he shortened the meeting’s question and answer period this year by a couple of hours.

“I think even if he dies, these businesses will retain their value,” Smith said while looking around the 200,000-square-foot exhibit hall filled with booths from Berkshire companies like BNSF railroad, Geico insurance, Pilot truck stops, Duracell batteries and many others. “I anticipate my stock going down for a while but good businesses and good people will come back,” she said.

But Smith and thousands of others will definitely miss hearing Buffett’s voice of reason after he is gone. Buffett has now been leading Berkshire for 60 years.

Buffett has said that Vice Chairman Greg Abel, who already oversees all of Berkshire’s non-insurance businesses, will take over as CEO when he is gone.

Shareholders like Steven Check, who runs Check Capital Management, aren’t especially worried about because Abel is proven and Berkshire’s businesses largely run themselves. Buffett has said that Abel might even be a more hands-on manager than he is and get more out of Berkshire’s companies.

“I think we’ll get a more hands-on manager and that could be that a good thing,” Check said. But he said Abel also knows that those managers enjoy the freedom to run their businesses and Abel isn’t going to do anything to turn them off.

Georgia-Pacific to close Emporia mill, cutting 550+ jobs

Southern Virginia is getting hit again. Employees at ‘s plywood were told Friday that the company plans to permanently close the mill, with more than 550 workers losing their jobs, according to an announcement by the Georgia-based company that is one of the world’s top manufacturers and marketers of tissue, pulp, paper and related products.

In a Friday statement, U.S. Rep. Jennifer McClellan, D-Petersburg, put the number of workers who lost their jobs in Emporia at 554.

It’s a major blow to a region that last year lost 600 jobs after Boar’s Head shut down its Jarratt plant following a listeria outbreak that killed at least 10 people and sickened dozens more.

In a news release, Georgia-Pacific stated that housing affordability and a 30-year low in existing are impacting its plywood business.

“Many of our plywood products are used in repair-and-remodel projects, which often occur when homes change ownership,” the release stated. “To align with current demand, we are reducing our production capacity.”

Normal operations will cease at the Emporia mill today and the site will permanently close July 1. Georgia-Pacific will give employees at least 60 days of pay and benefits in accordance with the Worker Adjustment and Retraining Notification Act.

Georgia-Pacific stated it would make a decision on the Emporia facility and property at a later date.

“My heart goes out to every family who now faces increased anxiety and potential hardship because of these , and I encourage impacted families to reach out to my office for help navigating resources they may need during this time,” McClellan said in a statement about the layoffs. “My office remains in contact with Georgia-Pacific and local officials to ensure the impacted employees receive access to job placement resources and support agencies.”

Georgia-Pacific will work with the laid-off employees in Emporia, the company said, “to provide access to local support agencies and job placement resources, including available opportunities within Georgia-Pacific or other Koch companies.”

Northern Virginia home listings surged 63% in March over 2024


SUMMARY:

  • Active home listings in rose 63.6% in March
  • may be boosting region’s
  • Northern Virginia market still tight
  • Median home price reached $755,625, up 3.5% from March 2024

In what the describes as a “striking divergence from national patterns,” Northern Virginia saw a 63.6% year-over-year increase in active monthly listings for March.

Nationally, total rose 19.8% in March over the same month in 2024, according to the National Association of Realtors.

“It’s certainly an uptick, and it’s an uptick that I think you almost have to say has to be attributable in some part to the labor turmoil in the federal sector and in contractors because of these cutbacks and announced job ,” said Terry Clower, professor of public policy at ‘s Schar School of Policy and Government.

Since President Donald Trump returned to the White House in January, tens of thousands of federal employees have been fired or put on leave as part of a measure to cut federal spending. Trump has also cut federal contracts, which has led to layoffs in the government contracting industry.

No firm data yet exists on how many Northern Virginia residents have lost their federal jobs.

At least 175,000 federal workers lived in the region as of 2023, according to data from the Northern Virginia Regional Commission. And the unemployment rate for Northern Virginia in March was 3.2%, up from 2.8% in January.

Putting your home on the market after losing a job or after witnessing your neighbors lose their jobs, Clower said, is a “very rational response.”

On the other hand, Matthew Cypher, director of the Steers Center for Global Real Estate at Georgetown’s McDonough School of Business, cautioned Friday that an increase in active listings for one month isn’t enough data to declare the sky is falling for Northern Virginia’s real estate market.

“Some might suggest that we’ve needed some churn like this to give other people an opportunity to buy into the market,” he said.

In March, there were 1,980 homes for sale in Northern Virginia, according to data released last week. There were 1,520 active listings in the region in February.

NVAR CEO Ryan McLaughlin described the increase in active listings as “breathing room” in an April 24 statement about the data.

“Rising inventory means buyers have more options, and sellers can expect more informed, competitive offers,” he stated. “This shift represents a healthier, more sustainable market for the long term.”

For Northern Virginia, March’s monthly supply of inventory (MSI) — a measure of how many months homes would remain on the market if no new inventory were added  — increased to 1.45 months, a 58% increase over the previous year and a 25% increase over February.

Even with the jump in inventory, Clower pointed out, Northern Virginia still has a tight real estate market. “We are still way below … the level of inventory for for-sale homes … 10 years ago,” he said.

Other real estate numbers

March saw 1,202 home sales closed in Northern Virginia, a 0.9% year-over-year increase. New pending sales increased 5.5% from March 2024 to 1,695 units.

“There hasn’t been much of a change in actual sales activity, say, versus the same month of last year, which actually then makes the escalation in listings look even more dramatic,” Clower said. “What you would normally see in this very tight market is if more homes came on to the market, there would be almost an equal number of sales.”

Homes spent an average of 18 days on the market last month, a 12.5% increase over the same period last year.

The median sale price last month in Northern Virginia was $755,625, up 3.5% compared with March 2024.

“Buyers are still willing to pay a premium for homes in our area,” Sherry Rahnama, a NVAR board member, said in a statement.

NVAR reports home sales activity for Fairfax and Arlington counties, the cities of , Fairfax and Falls Church, and the towns of Vienna, Herndon and Clifton.

Wall Street extends its gains to a 9th straight day, reclaiming losses since tariff escalation

SUMMARY:

  • hits 9-day winning streak, longest since 2004
  • Strong April job growth boosts market confidence
  • Tech and financial stocks lead broad market gains
  • U.S.-China tensions ease amid tariff delays

Wall Street extended its gains to a ninth straight day Friday, marking the ‘s longest winning streak since 2004 and reclaiming the ground it lost since President Donald Trump escalated his war in early April.

The rally was spurred by a better-than-expected report on the U.S. job market and resurgent hope for a ratcheting down in the U.S. trade showdown with China.

The climbed 1.5%. The Industrial Average added 1.4%, and the Nasdaq composite rose 1.5%.

The gains were broad. Roughly 90% of stocks and every sector in the S&P 500 advanced. Technology stocks were among the companies doing the heaviest lifting. Microsoft rose 2.3% and Nvidia rose 2.5%. Apple, however, fell 3.7% after the iPhone maker estimated that will cost it $900 million.

Banks and other financial companies also made solid gains. JPMorgan Chase rose 2.3% and Visa closed 1.5% higher.

Employers added 177,000 jobs in April. That marks a in hiring from March, but it was solidly better than economists anticipated. However, the latest job figures don’t yet reflect the effects on the of President Donald Trump’s across-the-board tariffs against America’s trading partners. Many of the more severe tariffs that were supposed to go into effect in April were delayed by three months, with the notable exception of tariffs against China.

“We’ve already seen how will react if the administration moves forward with their initial tariff plan, so unless they take a different tack in July when the 90-day pause expires, we will see market action similar to the first week of April,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management.

The S&P 500 slumped 9.1% during the first week of April as Trump announced a major escalation of his trade war with more tariffs. The market has now clawed back its losses since then, helped by a string of resilient earnings reports from U.S. companies, hopes for de-escalation of trade tensions with China and expectations that the Federal Reserve will still be able to cut rates a few times this year.

The benchmark index is still down 3.3% so far this year, and 7.4% below the record it reached in February.

All told, the S&P 500 rose 82.53 points to 5,686.67. The Dow gained 564.47 points to 41,317.43, and the Nasdaq added 266.99 points to 17,977.73.

The job market is being closely watched for signs of stress amid trade war tensions. Strong employment has helped fuel solid consumer spending and economic growth over the last few years. Economists are now worried about the impact that taxes on imports will have on consumers and businesses, especially about how higher costs will hurt hiring and spending.

The economy is already showing signs of strain. The U.S. economy shrank at a 0.3% annual pace during the first quarter of the year. It was slowed by a surge in imports as businesses tried to get ahead of Trump’s tariffs.

The current round of tariffs and the on-again-off-again nature of Trump’s policy has overshadowed planning for businesses and households. Companies have been cutting and withdrawing financial forecasts because of the uncertainty over how much tariffs will cost them and how much they will squeeze consumers and sap spending.

Hopes remain that Trump will roll back some of his tariffs after negotiating trade deals with other countries. China has been a key target, with tariffs of 145%. Its Commerce Ministry said Beijing is evaluating overtures from the U.S. regarding the tariffs.

Investors had a relatively quiet day of earnings reports following a busy week. Exxon Mobil rose 0.4%, recovering from an early slide, after reporting its lowest first-quarter profit in years. Rival Chevron rose 1.6% after it also reported its smallest first-quarter profit in years.

Falling crude oil prices have weighed on the sector. Crude oil prices in the U.S. are down about 17% for the year. They fell below $60 per barrel this week, which is a level at which many producers can no longer turn a profit.

Block slumped 20.4% after reporting a sharp drop in first-quarter profit that fell short of analysts’ forecasts. The financial technology company behind Cash App cited a pullback in consumer spending on travel and other discretionary items as a key reason for the results.

Treasury yields rose in the bond market. The yield on the 10-year Treasury rose to 4.31% from 4.22% late Thursday.

I voted for Trump. His tariff exclusions don’t reflect conservative strength


SUMMARY:

  • In an op-ed, an business founder and managing partner says President Donald Trump’s are causing economic uncertainty and industry decline
  • Protectionism in the 1920s and early 1930s under President Hoover turned a recession into the Great Depression
  • argues that Trump’s tariffs also may keep the nation from addressing growing national debt
  • He calls for Trump to focus on innovation and investment initiatives the president campaigned on

It was a sweltering day both in temperature and temperament when a businessman president signed a tariff bill that Henry Ford famously called “economic stupidity.” When President Herbert Hoover enacted what would become the country’s last major experiment with protectionism, in the form of the Smoot-Hawley Tariff of 1930, Ford and over a thousand economists warned against crafting economic policy out of fear rather than strength.

Fast forward to today. Millions of Americans enthusiastically voted for President Donald Trump, including myself, because he promised to restore American strength by unleashing innovation and industry to lead the world. That vision remains compelling. But tariffs do not project strength; they signal decline. This week’s GDP first quarter contraction announcement is a relevant example, as businesses hold on to capital amid uncertainty.

The U.S. Chamber of Commerce just asked the White House for a “tariff exclusion process” in order to prevent a recession. They asked to automatically lift tariffs on all small business importers and on all products that “cannot be produced in the U.S.” or are not domestically available.

The Jones Act of 1920 is a clear example of how protectionism stifles growth. Enacted to preserve national security by supporting a domestic shipbuilding base, it now functions as a drag on economic dynamism. The law drives up transportation costs by requiring that goods moved between U.S. ports be carried on American-built, -owned, and -crewed ships, especially in non-contiguous states and territories like Puerto Rico, Hawaii and Alaska. U.S.-built vessels cost up to five times more than foreign-built ships, making domestic shipbuilding globally uncompetitive.

A 2020 Cato Institute analysis found that the U.S. accounts for less than 1% of global commercial shipbuilding. Instead of catalyzing innovation, the Jones Act locks in inefficiency, shrinks market competition, and raises costs across entire supply chains. This isn’t just a protectionist relic; it’s a lasting threat to our and sovereignty.

Republicans have long opposed tariffs not out of blind loyalty to free-market doctrine but because they’ve seen firsthand damage from the Jones Act and the Smoot-Hawley Tariff of 1930. It didn’t protect workers, it punished them. It shattered supply chains, destroyed exports and helped turn a recession into a depression.

The Plymouth Cordage Company, once the world’s largest rope manufacturer, serves as a cautionary tale. Founded in 1824, it grew into a major employer and industrial innovator. But, its margins collapsed when Smoot-Hawley imposed tariffs on imported fibers like sisal and manila. The company struggled to adapt and was eventually acquired in the 1950s. The broader industry shrank by half in the five years following Smoot-Hawley.

Free innovation and trade have long been the engine of American prosperity. Economist Robert Solow estimated that technological progress accounts for over 80% of long-term U.S. per capita income growth. Entirely new industries from cloud computing to biotech have emerged from this shift. The U.S. leads the world in service exports, with a growing surplus driven by intellectual property, finance, and technology. Despite comprising less than 5% of the world’s population, Americans generate over 20% of global income. Our strength comes not from isolation but from integration with the global economy and a relentless capacity to innovate.

The industrial re-shoring President Trump rightly champions doesn’t require tariff-based affirmative action or a return to outdated models. It requires the same bold innovation we saw in Operation Warp Speed. Or the market-driven energy revolution of the 1970s, when the U.S. responded to crisis not by retreating but by unlocking domestic capacity. In 1977, the U.S. imported 46.5% of its petroleum. Today, we are net energy exporters. That’s what American strength looks like.

Tariffs don’t just harm industry; they jeopardize the nation’s ability to address its most urgent economic challenge: the federal deficit.

For 70 years, the U.S. has enjoyed extraordinary fiscal privilege as issuer of the world’s reserve currency. That status created what was effectively a limitless credit card. It enabled the nation to fight two wars while cutting taxes and bailing out the economy during the 2008 financial crisis and COVID-19 without triggering a collapse in investor confidence. But now, the limits of that privilege are being tested.

Debt has surpassed $36 trillion, and interest payments are projected to soon exceed the entire defense budget. Left unaddressed and compounded by demographic shifts, this trend will undermine the country’s ability to respond to the next crisis.

Businesses aren’t revived from default by cost-cutting alone. You have to innovate and grow. The same principle applies nationally. Pro-growth, pro-investment policies, not protectionist barriers, are what drive innovation, rebuild industrial strength and restore fiscal sustainability.

The president’s decision to pause new tariffs was a step in the right direction. However, the recent statements about complicated tariff exclusions is no way to govern. Businesses still face deep uncertainty. No company can commit to long-term investments when its cost structure may shift every 90 days. That kind of volatility discourages hiring, delays expansion and weakens the very growth the country needs to outpace its debt.

President Trump has a bold vision for a new golden age of American strength. That vision is within reach, but only if the country doubles down on the innovation, investment and fiscal responsibility that President Trump campaigned on.

Reviving American greatness means building forward, not looking backward. We win the future not by raising walls around our economy but by building and dominating industries that will define the next century.

Tanveer Kathawalla is the founder and managing partner of , an Alexandria-based investment company. He is a graduate of George Washington University and has an MBA in finance from the University of Virginia’s Darden School of Business.

General Dynamics submarine designers to strike on May 18 if contract deal isn’t reached


SUMMARY:

  • 2,500 workers may strike shipyard on May 18
  • Union demands include wage hikes, pension restoration, COLA
  • Contract talks continue after April 4 contract expiration
  • awarded $12.4B Navy contract for submarines

GROTON, Conn. (AP) — About 2,500 workers at General Dynamics’ Electric Boat shipyard in Connecticut plan to strike on May 18 if a tentative contract agreement is not reached with the , the union president announced during a rally Thursday.

About 300 union members cheered the announcement made by Bill Louis, president of the Marine Draftsmen’s Association-United Auto Workers of America, Local 571, The Day of New London newspaper reported.

“We’re officially putting the company on notice that if we don’t have an agreement at 11:59 p.m., we strike at midnight May 18,” Louis told the union members, most of whom are essentially responsible for designing the U.S. Navy’s nuclear submarine fleet.

A message was left seeking comment with an EB spokesperson in Groton.

The looming strike comes as a day after the U.S. Navy awarded EB’s parent company, -based General Dynamics, a contract worth more than $12.4 billion for the construction of two Virginia-class submarines authorized during last fiscal year. The funding also covers improved worker pay.

More than two-thirds of the union membership voted last month to authorize a strike if a deal couldn’t be reached on a new contract.

The union’s contract expired on April 4, but leadership has agreed to continue bargaining with EB. They’ve demanded higher wages over four years, the restoration of pension benefits for all members, cost of living adjustments and profit sharing with General Dynamics, among other changes.

“The clock has run out on corporate greed,” President Shawn Fain told members during a rally last month. “And I’ll tell you, this is a new UAW where the membership comes first and we refuse to aim low and settle lower.”

EB’s earlier now-expired offer had included a 23.3% general wage increase over the life of the contract, plus benefits and an increased package.

The company has acknowledged it has been “actively preparing a business continuity plan in the event of a work stoppage,” adding it will “not waver from our commitment to continue building submarines, the nation’s top national security priority.”

Home ownership further out of reach as rising prices, high mortgage rates widen affordability gap

SUMMARY:

  • Buyers now need $114K income to afford a median-priced home
  • average 6.76%, up from 4.1% six years ago
  • U.S. rose over 50% between 2019 and 2024
  • Listings and price reductions are increasing in many cities



LOS ANGELES (AP) — Home ownership is receding further out of reach for most Americans as elevated mortgage rates and rising prices stretch the limits of what buyers can afford.

A homebuyer now needs to earn at least $114,000 a year to afford a $431,250 home — the national median listing price in April, according to data released Thursday by

The analysis assumes that a homebuyer will make a 20% down payment, finance the rest of the purchase with a 30-year fixed-rate mortgage, and that the buyer’s housing costs won’t exceed 30% of their gross monthly income — an often-used barometer of housing affordability.

Based off the latest U.S. median home listing price, need to earn $47,000 more a year to afford a home than they would have just six years ago. Back then, the median U.S. home listing price was $314,950, and the average rate on a 30-year mortgage hovered around 4.1%. This week, the rate averaged 6.76%.

The annual income required to afford a median-priced U.S. home first crossed into the six figures in May 2022 and hasn’t dropped below that level since. Median household income was about $80,600 annually in 2023, according to the U.S. Census bureau.

In several metro areas, including San Francisco, Los Angeles, New York and Boston, the annual income needed to afford a median-priced home tops $200,000. In San Jose, it’s more than $370,000.

Rock-bottom mortgage rates turbocharged the during the pandemic, fueling bidding wars for homes that pushed up sale prices sometimes hundreds of thousands of dollars above a seller initial asking price. soared more than 50% between 2019 and 2024.

The U.S. housing market has been in a sales slump since 2022, when mortgage rates began to climb from their pandemic-era lows. Sales of previously occupied U.S. homes fell last year to their lowest level in nearly 30 years. In March, they posted their largest monthly drop since November 2022.

It’s not all bad news for prospective homebuyers.

Home prices are rising much more slowly than during the pandemic housing market frenzy. The national median sales price of a previously occupied U.S. home rose 2.7% in March from a year earlier to $403,700, an all-time high for March, but the smallest annual increase since August.

In April, the median price of a home listed for sale rose only 0.3% from a year earlier, according to Realtor.com.

Buyers who can afford current mortgage rates have a wider selection of properties now than a year ago.

Active listings — a tally that encompasses all homes on the market except those pending a finalized sale — surged 30.6% last month from a year earlier, according to Realtor.com. jumped between 67.6% and 70.1% in San Diego, San Jose and Washington D.C.

As properties take longer to sell, more sellers are reducing their asking price. Some 18% of listings had their price reduced last month, according to Realtor.com.

“Sellers are becoming more flexible on pricing, underscored by the price reductions we’re seeing, and while higher mortgage rates are certainly weighing on demand, the silver lining is that the market is starting to rebalance,” said Danielle Hale, chief economist at Realtor.com. “This could create opportunities for buyers who are prepared.”