Potential recession effects on real estate

[Account Closed]

Joe Rohan recently came out with a podcast with peter schiff, who is convinced there will be a recession in the next 3 years. There has been talk of this pending recession for the last few years, and I’m wondering what the more educated real estate investors believe will be the effect of a recession on the real estate market? Is it believed there will be similar effects on the real estate market as the 2008 recession, or will it be different since this recession will supposedly be much larger than the housing market?

[Nicole Heasley Beitenman]

Really good question. Owning is becoming less popular in general thanks to student loans and millennial trends such as more frequent job changes, delaying marriage/families, and lack of retirement savings. I don't see these trends reversing with the next generation. The 08 recession was, in part, because banks were throwing money at anyone who walked by a house. So I don't think the next recession will have the same effect on the housing market. If anything, another recession would make home ownership even less appealing, meaning more people renting and more opportunities for investors.