š Most people get this wrong about recessions and real estateā¦ š§ š”ā£
Recessions can actually help the housing market. Hereās why:ā£
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š When the economy overheats, the Fed raises interest rates to fight inflationāand thatās when real estate usually takes the hit.ā£
šø Higher borrowing costs = less activity and slower price growth.ā£
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But once the slowdown turns into a recession? The Fed lowers ratesāand real estate, being highly leveraged, is often the first to bounce back. šš„ā£
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This āfirst in, first outā cycle means housing actually recovered in 4 of the last 6 recessions (yep, 2008 was the big exception). š®š ā£
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š So while no one likes a recession, it might just be a launchpad for real estate investors.ā£
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And if you want to be ready to take advantage of that next bounce backā¦ā£
šļø Comment āBPCONā to get access to BiggerPocketsā biggest event of the year! šš„ā£
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