Recession Fears? The Housing Market Will Likely Weather the Storm

Recession Fears? The Housing Market Will Likely Weather the Storm

With tariffs and shaky consumer confidence making headlines, many are worried a recession could be right around the corner. But before panic sets in, let's get one thing straight: while a recession is possible, the housing market has a long history of resilience—even during economic downturns.

Here’s the reality check:

In the past 50 years, we’ve had seven recessions. And guess what? Home values increased in six out of seven of those recessions. The only time home values dropped was during the mortgage crisis of 2008—a result of lax mortgage standards, not the recession itself.

So why do homes generally hold their value during recessions?

It’s simple: although unemployment rises, interest rates tend to fall. Lower rates make it easier for people to qualify for loans, and more qualified buyers help keep home values stable.

So, while recession fears may be swirling, don’t believe everything you read. The housing market is more resilient than the headlines suggest. We've seen it before—real estate has a knack for bouncing back.