Recession-Resistant Property Types Worth Considering:

[Mohamed Youssef]

With economic uncertainty making headlines again, I've been researching truly recession-resistant property types beyond the usual suspects.

• - Mobile home parks continue to demonstrate remarkable stability. Unlike apartment tenants who might downsize during tough times, mobile home residents rarely move due to the $5-10K relocation cost of their homes. One investor in our network shared that their collections remained above 95% even during 2008-2009.
  
• - Self-storage has evolved from being recession-resistant to actually benefiting during downturns. As people downsize housing, demand for storage increases. The operational simplicity (minimal staff, low maintenance) creates impressive cash flow protection.
  
• - Medical office properties with long-term leases to healthcare systems offer another layer of protection. These tenants invest heavily in specialized buildouts and equipment, making them unlikely to relocate even when budgets tighten.

Less obvious: car washes. People still maintain vehicles during economic slowdowns but might switch from professional detailing to automated washes. Several express car wash chains have shown remarkable growth during previous contractions.

What recession-resistant properties are you considering for your portfolio? Is anyone having success with niche asset classes not mentioned here?

[Dominic Mazzarella]

Quote from @Mohamed Youssef:

With economic uncertainty making headlines again, I've been researching truly recession-resistant property types beyond the usual suspects.

• - Mobile home parks continue to demonstrate remarkable stability. Unlike apartment tenants who might downsize during tough times, mobile home residents rarely move due to the $5-10K relocation cost of their homes. One investor in our network shared that their collections remained above 95% even during 2008-2009.
  
• - Self-storage has evolved from being recession-resistant to actually benefiting during downturns. As people downsize housing, demand for storage increases. The operational simplicity (minimal staff, low maintenance) creates impressive cash flow protection.
  
• - Medical office properties with long-term leases to healthcare systems offer another layer of protection. These tenants invest heavily in specialized buildouts and equipment, making them unlikely to relocate even when budgets tighten.

Less obvious: car washes. People still maintain vehicles during economic slowdowns but might switch from professional detailing to automated washes. Several express car wash chains have shown remarkable growth during previous contractions.

What recession-resistant properties are you considering for your portfolio? Is anyone having success with niche asset classes not mentioned here?

Well I came in here expecting to add something but you hit the nail on the head. These are pretty much all assets that I like to look at for the very reasons you suggested.

I've never done a medical office, but can speak from first hand experience that collections from mobile home parks and self storage is solid in an up or down market. I think a lot of it has to do with the price point honestly. Even in tough times, people can usually afford to live in a MHP. And self storage tends to not be very expensive either so people keep paying because they don't want to get rid of their stuff...usually.