2 Smart Trades for 2021’s Smart Home Drivers
Home is always where the heart is.
And in 2021 and beyond, smart homes are where the gains are.
Two things are fueling a major boom in home construction this year.
Check out this chart. Year to date, the S&P 500 homebuilding index is up 43%:
Here are the two reasons we’re seeing this tremendous leap in homebuilding:
- Smart homes of the future.
That’s right. Our America 2.0 mega trends are driving this incredible opportunity for you. I’ll tell you how and the two best ways you can invest today.
Millennials + Smart Home Breakthrough Tech = Big Gains
According to CoreLogic data, millennials are leading the pack for home purchases. They also comprise more than half of all home-purchase applications.
It’s important to note that as millennials — the largest U.S. age group — enter their peak first-time homebuying years, smart and connected homes will become the home industry norm and not the exception.
According to a recent report from Nasdaq.com, millennials are changing the traditional housing market.
The younger generation is seeking to purchase new homes that are “focused on reducing carbon footprints and making optimal utilization of space … have load-balancing EV [electric vehicle] charging stations … sustainable energy like solar plants …[and] access to quality building-wide gigabit Wi-Fi…”
Simply put, they want smart homes.
The global smart home market is projected to reach $622.6 billion by 2026, growing at a compound annual growth rate of 29.3%.
But it doesn’t stop there.
Smart home technology will not be stopped by a front door.
Amazon’s latest smart tech endeavor will soon turn smart homes into smart neighborhoods.
Per CNET, on June 8 Amazon will launch “Amazon Sidewalk,” which will create entire smart neighborhoods!
This expanded tech will fit perfectly in the growing smart home wheelhouse.
If you own a smart digital assistant such as an Echo speaker or a connected video doorbell like Ring … this smart tech update is for you.
As CNET goes on to report:
Amazon Sidewalk … uses a small fraction of your home’s Wi-Fi bandwidth to pass wireless low-energy Bluetooth and 900MHz radio signals between compatible devices across far greater distances than Wi-Fi is capable of on its own — in some cases, as far as half a mile.
Existing Echo and Ring products will automatically receive a software upgrade that will enable their devices to become Sidewalk capable.
These tech advances show that current new home construction and smart homes/neighborhoods of the future are here.
And the best part? Our mega trends such as the Internet of Things (IoT), artificial intelligence (AI), robotics and millennial household formations will gain from these innovative advances.
2 Smart Trades for Growing Millennial Tech Trend
This new housing disruption uses what we call “stacking mega trends.” And it’s exactly what creates this incredible investing era of America 2.0.
And that means a top investment recommendation for you. In fact, I have two.
Smart Trade No. 1:
Major U.S. homebuilders understand the desires of new millennial homebuyers today.
That’s why they’re building homes linked to the internet in multiple ways.
From smart thermostats to smart door locks, homes of today are connected.
Homebuilders are partnering with technology companies to ensure their homes are fully Wi-Fi capable, with integrated automation and voice control tech.
To participate in these new smart homebuilding gains, consider buying iShares U.S. Home Construction ETF (BATS: ITB).
This exchange-traded fund (ETF) includes homebuilders that keep smart tech at the forefront of their construction projects.
So far this year, ITB is up 33% with potentially more gains ahead.
Given that new home sales and housing starts trounced economists’ estimates in March by as much as 15%, as well as the persisting nationwide housing shortage, further new home construction expansion is on the horizon.
We are very bullish, optimistic and positive (#BOP) on smart homes, neighborhoods and cities as drivers of the America 2.0 revolution.
And because this mega trend transformation is so huge, Paul’s discovered a smart city play he’s calling the “trade of the decade.”
Please check out this special presentation made just for you with all the details on this revolution and how you can claim his new mega trend report.
Until next time,
Director of Investment Research, Banyan Hill Publishing