Is Mult Family the closest asset class to being “recession proof”

[Matt Nettles]

Is multi family the closest to “recession proof” of the asset classes? Why or why not?

[Brian Burke]

It’s absolutely not recession-proof. Just ask any owner that owned properties that were half-empty, and the other half weren’t paying their rent, during the last recession (I’m one). 

But does that mean that real estate suffers during every recession?  This is somewhat akin of asking if illness causes vomiting.  The stomach flu probably will but a head cold probably won’t. Similarly, every recession is different.

I was building and flipping homes during the recession that followed the 2000 dot com bust. I didn’t even notice it. My houses sold just fine. My rents and occupancy were fine. But during the great financial collapse in the late 2000’s?  It was all I could think about. Very uncomfortable conversations were a common occurrence, and I wasn’t sure I would find a way through it. Determination and perseverance prevailed, fortunately, and during the ride up on the other side my business grew far larger than I ever would have imagined...which wouldn’t have happened without the pain...