MARKET & TRENDS
RECESSION- PROOF MARKETS
SPONSORED CONTENT
Top 5 Recession-Proof Markets in 2023 INVESTMENTS IN THESE MARKETS ARE LIKELY TO SEE INCREASES THE LONGER YOU HOLD THE PROPERTY.
By Zach Lemaster
hoosing the right real estate investment to add to your
demand is also slowing down somewhat, which should make it easier for you to invest in real estate without needing to make numerous bids before one is accepted. Although the current state of the economy is adversely affecting the real estate market as a whole, some individual markets appear to be recession-proof, meaning they will perform like they do when the economy is healthy. IDENTIFYING RECESSION-PROOF MARKETS Identifying markets that are considered recession-proof requires considering many factors, including everything from the average sale price to the population numbers. The following offers a comprehensive overview of five of the top recession-proof markets you can invest in throughout 2023. KANSAS CITY, MO As the largest city in Missouri, Kansas City has long been a popular destination among California NO. 1 residents as well as people who are moving from other large Midwest cities. Numerous pieces of data and statistics point toward Kansas City being recession-proof. For
instance, the median sale price in the city has continued to increase, which means buyer demand isn’t dropping like it is in cities and towns that aren’t recession-proof. In every real estate market, home prices usually reach their highest in the late spring and summer before dipping slightly in the winter when not many buyers are on the market. Although this is the case in Kansas City, the me- dian sale price has been trending higher for a lengthy period of time. Throughout the coming months, home values in Kansas City should increase because there are no signs the recession is impacting the local real estate market. Even though homes have become more expensive in Kansas City, the median price of $230,000 is highly affordable compared to many popular markets throughout the U.S. Keep in mind that rents don’t fall much during recessions, which gives you the opportunity to charge relatively high rents even when you’re able to purchase a property at an affordable price. In January 2023, more than 400 homes were sold in this market. Home sales usually get close to 1,000 per month during the warm summer months. During the past few years, home sales in the city have been relatively consistent,
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portfolio requires ample research and extensive knowledge about the market you’re investing in. A poor decision can result in your portfolio dropping substantially in value at a time when you’re trying to increase your gains. When the broader markets start to dip and the economy enters a recession, selecting the best investment becomes even more important. The most rewarding investments are ones that occur in reces- sion-proof markets, which are areas where homes are in high demand regardless of how the economy is performing. By investing your money in homes that are situated in recession-proof markets, you can benefit from consistent rental income, moderate appreciation even in down economic times, and contin- ued rental increases year over year.
NOW IS A GREAT TIME TO INVEST
Recent market trends indicate that 2023 is the perfect time to invest in real estate, as long as you focus on the right markets. In recent months, interest rates have continued to increase. However, these increases have slowed and may come to a stop by the end of the year. Buyer
22 | think realty magazine :: november – december 2023
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