What Will Happen To REITs In A Recession?

Jun. 27, 2024 7:45 AM ET, , , , , , , , 33 Comments
(6min)

Summary

  • Many investors fear that REITs will crash if we hit a recession.
  • But I expect the opposite.
  • As weird as it may sound, I think that a recession would benefit REITs.
  • High Yield Landlord members get exclusive access to our real-world portfolio. See all our investments here »

Housing market is falling. Housing Crisis, Low prices. Home Finances, Recession. Concept of decreasing or slumping home prices and value or a real estate bust. 3D house on downward arrow

Ahmad Bilal/iStock via Getty Images

In a recent market update, we explained that we might be headed into a recession. This has led many of you to ask us how this will affect REITs (VNQ).

Generally, a recession is bad, of

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This article was written by

66.78K Followers

Jussi Askola is the President of Leonberg Capital, a value-oriented investment boutique that consults hedge funds, family offices, and private equity firms on REIT investing. He has authored award-winning academic papers on REIT investing, has passed all three CFA exams, and has built relationships with many top REIT executives.

He is the leader of the investing group High Yield Landlord, where he shares his real-money REIT portfolio and transactions in real-time. Features of the group include: three portfolios (core, retirement, international), buy/sell alerts, and a chat room with direct access to Jussi and his team of analysts to ask questions. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NNN; ARE; EPR; WSR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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