“Recession” is a dirty word in real estate investment. When we hear it, we tense up. We can feel our hearts stitch a little bit. Our memories of a recession are still fresh. For many, the wounds are raw and the effects are still felt even a decade later. The Great Recession, as many have come to call it, rocked the housing market beginning in 2008 and hit its full stride in 2009 and in the years following.
At the tail end of 2007, America rang in a recession alongside the new year. This economic downturn officially lasted until June of 2009...though many negative effects having continued to linger well into 2015. As it’s been one of the most significant economic crises in the United States in the last century, many now call it “The Great Recession.”
As real estate investors, it’s vital to pay attention to the economic climate—not just in our local markets, but in the U.S. as a whole.
We still struggle with the aftershocks of the recession. Its causes, recovery, and future are intrinsically tied to the real estate market, unlike that of recessions past. Especially as so much is hinging on the housing market, now more than ever, we should strive to understand how it happened and where we need to go from here.
Plenty of factors figure into the state of the U.S. economy. When the economy crashed a few years ago, the housing market was largely blamed. Very slowly, we’ve been climbing out of this economic hole. The general public opinion of the recovering economy, however, is still mixed and hasn’t changed much from 2009. In a study by the Pew Research Center in February of this year, a reported 61% of Americans were hearing a mixture of good and bad news surrounding the U.S. economy and its recovery, 33% heard mostly bad news, and only 5% heard mostly good news.