Why Real Estate Stays Strong — Even in a Recession

Lately, there’s been a lot of talk about the possibility of a recession — and with it, fear around what that might mean for the housing market. First, let’s define what we’re even talking about: A recession is typically identified when the economy slows for two consecutive quarters. That slowdown can impact jobs, consumer spending, and confidence. But one thing it hasn’t consistently hurt? Real estate.

Why People Only Remember 2008. When the average person hears “recession,” they immediately think of 2008. That year left a deep mark — and understandably so. It was one of the worst financial crises in U.S. history, and housing played a central role in both the cause and the fallout. But here’s what’s important to remember: 2008 was the exception, not the rule. 

Take a Look at the Full Picture. We’ve had multiple recessions since 1980, and in nearly every case, home prices stayed flat or even increased. To help put things in perspective, I’ve included a chart below that breaks down how real estate performed during each of those economic downturns: This clearly shows that housing is one of the most resilient long-term investments — even in times of economic uncertainty.

What Makes Today Very Different from 2008. Right now, we’re seeing the opposite of what happened back then: In 2008, inventory flooded the market due to foreclosures and overbuilding. In 2025, we’re facing historically low inventory. Many homeowners are staying put, locked into low interest rates, while new construction still can’t keep up with demand. This tight inventory means that even if buyer demand softens slightly, homes will still move quickly, and values are likely to remain stable or continue to rise.

What This Means for You. If you’re considering buying or selling, don’t let fear from headlines hold you back. Real estate remains one of the safest and most powerful ways to build long-term wealth. The market may shift, but history shows us: housing holds strong.