TREX - 5 Stocks to Cash In on the Coming Suburbanization Trend
Don't look now, but the suburbs are cool again. After decades of urbanization -- with folks leaving rural areas for metropolitan hotbeds -- we're now seeing an exodus of young people in major cities into the outlying suburban areas. Welcome to suburbanization.
The pandemic changes everything. Big city offices are encouraging their staff to work from home, and that means there's no need to keep paying stiff metropolitan rents. Social distancing also makes it less appealing to live so close to your neighbors, and let's not get started on the perils of cramped high-rise elevators. The allure of a single-family home in the suburbs -- one with space for a Zoom room -- is everything right now.
Unlike de-urbanization or counterurbanization, where city dwellers return to rural turf, the new suburbanization movement finds folks staying reasonably close to the metropolitan buzz but in a quieter and more spaced-out setting. There's money to be made whenever consumer tastes shift, and that's where Invitation Homes (NYSE: INVH), Trex (NYSE: TREX), Uber (NYSE: UBER), Peloton (NASDAQ: PTON), and Lemonade (NYSE: LMND) show up to your portfolio's housewarming party.