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Real Estate Will Outperform Other Assets

Is a Recession Coming? 

Many experts feel that asset classes such as multifamily, medical office buildings, self-storage, and last-mile industrial will be particularly suitable for investment during a recession.

High mortgage rates and the unaffordability of single-family housing have increased the demand for multifamily housing rentals.

As patients return to in-person visits after the pandemic, medical offices across the United States are experiencing high occupancy. Low capital expenditure and counter-cyclical demand may continue to benefit self-storage.

Finally, with an increased focus on e-commerce and improved supply chain logistics, a comeback is undoubtedly in the cards for industrial real estate. 

Making any investments during a recession sounds intimidating. There are some tax advantages that can make real estate an advantageous investment option, even during inflation.    

The greatest strength of real estate is that people will always need places to live. A recession may lead to reduced spending, but housing is not an expense that individuals cut out of their monthly budget.

Continued Demand for Housing

Creation of Cash Flow

Unlike other assets that pay out only when sold or retired, real estate property can provide rental income. This cash flow can offer some liquidity when the market is down. 

Since 1980, the American economy has encountered five recessions. In four of those, the average year-over-year fall in home prices was 5%. If the same historical pattern repeats, purchasing a house could become significantly cheaper and a good investment when the market recovers.

Attractive Return

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