Is a Recession Coming? Don't Panic About the Housing Market – Here's the Reality

Is a Recession Coming? Don't Panic About the Housing Market – Here's the Reality

Recent news about tariffs and declining consumer confidence has raised recession fears. And while no one can predict the future, the chances of a recession this year have certainly increased. But here's where the media might be stoking unnecessary fear: many stories are pointing to the housing market as a victim of the downturn.

But let’s look at the facts:

In the past 50 years, there have been seven recessions, and guess what? Home values increased six out of seven times. The only time they dropped was during a period of overly relaxed mortgage qualifications (remember 2008?).

Without that anomaly, housing values tend to hold up even during a recession. Why?

Because while unemployment does rise during recessions, it lowers interest rates—and that makes more people qualified to buy homes. The increase in qualified buyers often offsets the job losses, keeping home values stable.

So, while economic uncertainty looms, history shows the housing market tends to bounce back, proving it's resilient even during recessions. Don't let the headlines scare you—real estate has weathered storms before, and it’ll do it again.