Hey, this is Paul with this week’s
Winning Investor Daily and this week I have something really interesting that
most people I believe are not thinking about. So, if you’re looking for a house,
you probably have noticed that there’s simply not that many houses and if you
want a new house it’s even harder to find one, so I recently read this article
that really… like it’s a shocker… the median age of a house in the United
States is 37 years old. And even more shockingly, between 2010 and
2016 we just added three million units. Now it sounds like a lot, but really it’s
like a tiny, tiny number of units because it represents about 4% of the housing
stock. And when you read this article even further which I’ve provided a link
to between 2000 and 2009 the houses that were built just represent 16%. So, 38% of
all of the houses that we have in the United States were built before 1970.
Just think about that before 1970. So we’re talking about 48 years ago that’s
when these houses were built. And I can tell you that while housing techniques
and construction techniques are quite good, they are simply not intended to
last forty eight years without an enormous amount of money being put into
it to refurbish it and to keep it maintained. So, we need, yes I’m gonna say
that we need a housing boom to make up the gap that the fact that we have not
been building enough houses for now about 10 years. The fact that so
much of our housing stock is really depleted; that’s the right word – depleted.
Meaning that if you went in and you looked at when these houses you go wow
I’d have to put a ton of money into this house to make
this livable and to make this come up to modern standards – what most people expect
today. So I’ve been telling you about this situation since February of 2016 as
part of the coming-of-age theme that I invest around in my Profits Unlimited
service, because we have this group of Americans that are termed the millennial
generation. They are 92 million strong, they’re the largest generation in
history, and they’re coming of age meaning they’re arriving to their
mid-30s this is the time when you buy a house, you start a family. And they are
out there in force looking for houses and I’ve bet that they’re feeling some
frustration that they can’t find a house. So, I recommended back in February of
2016 that you buy an ETF. It is, you’ll see this here, I’m going to put this the
chart up it is ITB is the ticker symbol that’s ITB and this is the US home
construction index. And if you had bought it when I told you about it in February
2016. You’re up about 40 percent or so, however, you’ll see from that chart
you’ll see it says year-to-date it’s down a little under 30 percent. This
ETF has gone down a lot and what’s going on? Now, when you look at it, you would
think that there’s perhaps a crash that’s going on or something like, when in truth really what there is largely fear. There’s fear of a housing
crash, there’s fear of a crisis, and truthfully for me I believe a lot of
this is really doom mongering, which is that the biggest issues with real estate are
that we have too few houses for people to buy in so many markets, particularly
the markets in the middle of the country. We simply don’t have enough houses to
meet the demand that’s out there. And then we do have this issue that in some
number of markets, particularly on the coasts: San Francisco, New York,
prices have been going up there for a very very long time. And
there they’re seeing weakening because in many cases there’s too much supply
and that’s because those markets have been going up a long time, and also it’s
been the higher end of those markets that have been going up. So a lot of
people have simply been priced out. Now the fix for the vast majority of the
country is for us to simply build more houses, lots and lots of houses. And to
tear down old ones and to put new ones in their place that meet the
expectations, meet the demands of the millennial generation, of other people
that are looking to buy houses that expect a modern, new house that is really
appropriate for our time. And those include any number of features whether
it be solar panels on the roof various e-features: internet connections that make
it very easy; e-switches and things like that. And as we build more of this, it’s
going to fix the problem of the fact that we have not enough houses, and also
prices will moderate. Supply will naturally fix the fact that in
the places where prices have been rising fastest those will moderate, and that’s a
good thing, that’s not a reason to fear a crash. If more houses come it will meet
the demand and that will moderate prices that’s a good thing. And even with all
that we’re still going to continue to need to build houses for a very long
time – 5, 7, maybe even 10 years. So all of that means that sooner rather than later
this ITB ETF is going to turn around and I believe it’s going to zoom higher.
Ensure it might be volatile for a few more weeks and maybe a month or two, but
sooner or later this is going to go up, and I believe it’s going to go up a lot
because of the vast magnitude of the gap between the demand for housing and the
supply. Now, if you’re interested in other stocks that focus on the millennial
generation because housing for sure is a play on the coming-of-age of the
Millennial Generation because it’s their demand that’s going to drive the stocks
in this ETF. Home construction stocks, stocks like
Home Depot, Lowe’s and others, well you should also check into my Profits
Unlimited service where we take a very unique focus on the millennial
generation and find stocks that really are set to zoom higher, rocket higher as
a result of what they are doing to our economy. So check into my Profits Unlimited service. Also, please give this video a
thumbs up, subscribe to this channel if you don’t already subscribe to it, and
please share it with your friends and family so we can continue to make these
videos for you. I’ll have another great video for you
next week until then this is Paul Mampilly for
Winning Investor Daily.

3 thoughts on “The 1 Industry Boom That No One’s Talking About – Paul Mampilly”

  1. In my view, this housing boom will not happen for a long time. Millenniums just cannot afford to buy a house because they are broke (student debt) and their jobs do not pay enough.

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