How Recession Proof is Multi-family?
In addition to our Top 10 Reasons Multi-family is a Must, another reason we like multi-family is how recession-proof and resilient this property sector is. Even if there’s an economic downturn in the near future, the apartment sector is likely to hold up according to experts.
According to National Real Estate Investor, the US apartment Sector would continue to remain strong even in a recession.
“Apartments are still resilient against a possible recession,” says Andrew Rybczynski, senior consultant for CoStar Group Portfolio Strategy.
“Today, the apartment industry fundamentals are so strong, I don’t think a potential recession would affect us that much.” “Multifamily is the preferred place for people to go looking for returns.” - John Sebree, director of the national multi-housing group with real estate services firm Marcus & Millichap.
Less expensive apartments benefit from very strong demand, compared to luxury apartments which are at most risk in a downturn.
According to a recent CBRE Multi-Family Research Brief, they considered Mult-family the most resilient property sector to recessions when compared to office, industrial and retail.
Multi-family rents have outperformed during and after the 2008-2009 recession. This sector experienced the lowest level of rent decline and fastest recovery to pre-recession peaks and the longest post-recession period of growth (see chart below).