What typically happens to rents during a "recession"?

Question

In most cases during a "recession" what spots in the single family and multi famiy market tend to perform well? And on the flip side which spot tend to perform poorly? Any insight is appreciated! Thank you

Russell Brazil · Answer

Incredibly market specific. Here in the DC area, rents grew considerably during the last recession. Other markets they collapsed.

Brent Paul · Answer

In my area Rents didn't fall at all. If anything it made it very competitive being so many people lost homes and were looking to rent. The one area that did sort of struggle were luxury apartments. I tend to stay away from those.

If you buy in decent areas with enough cash flow you should be able to ride out any recession that looms. I buy in areas with good schools, parks, etc. Never had a problem with finding renters.

Rob Malda · Answer

The low end of the market will do better. Mobile home parks will be least affected. Luxury properties will take the biggest hit. Besides that it's all about jobs in the local economy.

Clifford Paul · Answer

What Russell and Brent said! We actually raised rents and had zero vacancies.

What typically happens to rents during a "recession"?

What typically happens to rents during a "recession"?

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