Why Renting Will Become the New American Normal (And How Investors Can Profit)

"So, if this goes out into fruition, who's going to win? Banks. And how can you invest in banks? Well, you can invest in individual bank stocks, or you can also look at bank ETFs. Here are a couple examples. Example number one is XLF. This is the State Street Financial Sector ETF, which is giving exposure to generally financial companies, many of which include banks. Another example here is KBWB. This is an ETF created by Invesco, which is giving you exposure to banks. Why am I saying this? Well, if banks are issuing more mortgages because people can afford more 50-year mortgages, they're also going to be paying more interest to banks."

"Number two, if more people continue renting and this trend continues, well, that creates an opportunity for you to be investing in those rental properties that people are renting. You can go out and actually buy or build these rentals. Or you can invest in a REIT. A REIT is a real estate investment trust. It's a company that's investing in real estate. And there are REITs that specialize in this type of residential real estate. Now, you can invest in individual REIT or you can also invest in a fund that's giving exposure to a lot of different REITs. Now, for the purposes of this video, I'm just going to focus on broad ETFs because they're less risk. But you do your own research. Again, if you check out my investing master class down in the description, you'll see how you can actually research individual trends and find individual companies as well. So, example number one, Reez. This is a REIT created by Eyesshares that focuses on residential and multifamily real estate. And then another REIT if you want to go more broad is VNQ. This is created by a company called Vanguard. And this is more focused on broad real estate in general."

"Option number three is we know that the housing building industry has been kind of slow recently because the housing market has slowed down. But the area where we are seeing growth is builders building build to rent. So instead of building a house to sell it, builders are building properties to rent them out. And this can create opportunities if you want to invest in those builders that are doing the build to rent or you can invest in ETFs. Now these ETFs aren't directly giving you just build to rent companies, but they're giving you broader exposure to builders. So these examples are ITB. ITB is an ETF created by Eyesshares which is giving exposure to United States home builders. And then there's XHB. This is another ETF that's created by State Street that's giving exposure to home builder companies here in the United States."

"Number four is the self- storage industry. With housing being so expensive, a lot of people have been thinking about downsizing. And as people rent if they don't own, sometimes people need a separate storage space. Well, there are stocks that give you exposure to this self- storage industry. Now, there aren't any ETFs that at least I'm familiar with that give you exposure to the self-s storage space, but if people are downsizing or they're just renting and they need some additional storage, these self- storage businesses are going to continue to be able to grow."

"And then last but not least is the modular and mobile home and alternative home, small house business. So, as housing has become so expensive, people are looking for alternatives. Some people have moved into their vans. They've moved into trailers. They moved into modular homes. They moved into mobile homes. And they moved into all their small houses. Again, it's just a whole new industry that's been starting to pop up over the last 5 to seven years. And if housing continues to stay expensive, if more people want to get away from the traditional big house, this can create an opportunity here. Again, there aren't any ETFs that I know of to give you exposure to these alternative housing solutions, but there are stocks out there that can give you exposure to modular or mobile housing."

"If we continue to see more people renting, well, that benefits investors who own those rentals. And you can own the rental yourself or you can invest in a company that's doing that. We talked about ETFs that are doing that."

"If more people continue to rent, home builders that are building properties to rent could see more growth than the builders that are just building to sell, there are stocks and funds that give you exposure to that."

"And then you can also invest into self storage industries because if people continue to rent or they continue to downsize, they might need separate storage spaces, which is good for those businesses."

"And finally, as housing continues to stay expensive, people might look for alternative type of housing, module housing or mobile housing or tiny housing or other sorts of different housing which could be a new business opportunity because again what investors want to know is where is the money moving and if you can identify where the money is moving that can create an investment opportunity for you."

"if banks are issuing more mortgages because people can afford more 50-year mortgages, they're also going to be paying more interest to banks."

"if more people continue renting and this trend continues, well, that creates an opportunity for you to be investing in those rental properties that people are renting. You can go out and actually buy or build these rentals. Or you can invest in a REIT."

"builders are building properties to rent them out. And this can create opportunities if you want to invest in those builders that are doing the build to rent or you can invest in ETFs."

"With housing being so expensive, a lot of people have been thinking about downsizing. And as people rent if they don't own, sometimes people need a separate storage space. Well, there are stocks that give you exposure to this self- storage industry."

"As housing has become so expensive, people are looking for alternatives. Some people have moved into their vans. They've moved into trailers. They moved into modular homes. They moved into mobile homes. And they moved into all their small houses."

"if this 50-year mortgage happens, it's a bad idea. I don't recommend you do it. But if it happens, banks are going to make more money. That can benefit the bank stocks."

"If we continue to see more people renting, well, that benefits investors who own those rentals. And you can own the rental yourself or you can invest in a company that's doing that."

"If more people continue to rent, home builders that are building properties to rent could see more growth than the builders that are just building to sell"

"And then you can also invest into self storage industries because if people continue to rent or they continue to downsize, they might need separate storage spaces, which is good for those businesses."

"And finally, as housing continues to stay expensive, people might look for alternative type of housing, module housing or mobile housing or tiny housing or other sorts of different housing which could be a new business opportunity"