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BiggerPockets Real Estate · August 22, 2024 · 51m

How to Build a Recession-Proof Real Estate Portfolio

Meyer examines how rental portfolios performed during the 2008 crash, the 2020 pandemic, and the 2022 rate spike. The lesson: diversified rental portfolios in essential housing survive every recession.

Canon

Meyer shows that investors who survived recessions controlled their leverage ratios, maintained cash reserves, and screened tenants rigorously. Those who failed over-leveraged and under-reserved.

Highlights

Essential housing — workforce rentals in the $800-1400/month range — is the most recession-resistant asset class
Meyer shows that during every recession, luxury rentals and high-end flips suffered dramatically while workforce housing (affordable rentals for working families) maintained occupancy and rents.