What Impact Will a Looming Recession Have On Build-To-Rent?

A looming recession could potentially have both positive and negative impacts on the build-to-rent market in the United States.

On the one hand, recessions often lead to job losses and economic uncertainty, which can make people hesitant to purchase a home. This could increase demand for rental properties and make the build-to-rent market more attractive to investors.

On the other hand, recessions can also make it more difficult for people to secure financing, which could slow down new construction projects and limit the supply of build-to-rent properties. Additionally, if the recession is severe and leads to a significant drop in demand for rental properties, it could lead to increased vacancies and lower rental rates.

Overall, the impact of a recession on the build-to-rent market would depend on the severity of the recession, as well as a range of other factors such as interest rates, government policies, and local economic conditions. However, it's worth noting that historically, rental properties have often proven to be more resilient during economic downturns than other types of real estate investments.