The problem
A world of shocks, and not enough homes.
Rates, energy prices, supply chains and technology are moving quickly. The workers who keep essential services running are caught in the middle.
Shocks are a feature, not a bug
In the last few years alone investors have lived through a pandemic, a rapid rise in interest rates, energy-price swings and fast-moving technology change. We do not claim to know what comes next. We assume volatility will continue and ask: what demand is most likely to still be there afterward?
The housing gap
Freddie Mac estimates the U.S. is 3.7 million housing units short of long-run demand, and that despite adding 5.8 million units over roughly four years, demand grew by almost as much.1 The Congressional Research Service notes estimates vary by method and that shortages are not evenly distributed by geography.2
The essential workforce keeps growing
Healthcare and social assistance is projected to add about 2.0 million jobs from 2024 to 2034, growing almost three times faster than the overall economy (8.4% vs. 3.1%).3 Electricity demand is rising too, driven in large part by data centers and electrification, with the West South Central region, which includes Texas, accounting for the largest share of forecast sales growth.4,5
Where that leaves people
Essential workers often need to live within reach of hospitals, plants and service hubs, on schedules that make long commutes hard. That is the demand the fund is designed to serve.