Listen as Eventide Research Analyst Faina Rozental explains why the increasing barriers to homeownership in America, particularly among the lowest income groups, could lead to financial instability for generations of families and how Eventide seeks to invest in businesses that are making the homeownership ecosystem more resilient and equitable.
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Faina Rozental: We live at a time when we have more demand for houses than we have supply. We seek to invest in solutions to this persistent housing shortage. Homeownership is not for everyone, but it can have many social benefits like childhood stability, community stability, and even more civic engagement and home ownership can be a source of financial stability for generations of families. However, Americans are facing increasing barriers to home ownership, particularly for the lowest income groups. And there are also racial disparities in homeownership breeds. 70 million-plus millennials are entering their prime home-buying years followed closely by Gen Z. The baby boomer generation, also 70 million strong, is wanting to age in their houses for longer. Covid has accelerated two secular trends, deurbanization, and migration to the economically vibrant Sunbelt. Meanwhile, inventory levels are also near all-time lows after a decade of underbuilding. Plus, construction trades are facing labor shortages that will take years to fill. We seek to invest in businesses that are making the homeownership ecosystem more resilient and equitable. These types of organizations could include home builders, manufactured housing REITs, home improvement companies, financial institutions, and even state housing agencies. Homeownership can have many social and economic benefits for families and future generations. We seek to invest in companies that make homeownership more accessible. This is what we call investing that makes the world rejoice®.