Are we in a recession? A lot of people certainly think so. After a surprisingly accurate recession indicator went off weeks ago, more and more Americans have begun to believe that we’re already facing an economic downturn. The problem? We rarely know we’re in a recession until we’re out of one. So, how can we be sure we’re in a recession and not just seeing a boomerang effect from the hot post-pandemic economy?

For many Americans, it sure FEELS like a recession. Unemployment has gradually increased, the cost of living has risen significantly over the past few years, and men may be buying fewer pairs of underwear (that’s actually a recession indicator). So, if we are in a recession, what should real estate investors do now to prepare so they don’t get the rug pulled on them before it’s too late? Do you sit tight or start contemplating selling properties?

Dave, Henry, and Kathy all share what they’d do in a recession, the not-so-obvious signs of a recession (or a recession in your specific industry), and whether or not they believe we’ll be in a recession over the next year. If the worst has yet to come, you’ll be able to spot the signs of a coming recession after this episode.

In This Episode We Cover

Whether or not we’re in a recession right now (and signs of one)

The one recession indicator going off that’s pointing to an economic downturn

Signs that we’re already in a recession and what we would do during one

How to deleverage yourself from riskier properties if the economy starts to slow

Whether or not a recession is still in the cards over the next year 

Why it may be time to start saving once your husband/brother/nephew stops wearing new underwear

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

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Find an Investor-Friendly Agent in Your Area

See Dave at BPCON2024 in Cancun!

Dave's BiggerPockets Profile

Henry's BiggerPockets Profile

Kathy's BiggerPockets Profile

On The Market 238 - Recession “Yellow Flags” Emerge as Unemployment Metric Rises

Get Your BPCon2024 Tickets!

 59% of Americans wrongly think the U.S. is in a recession, report finds

Grab the Book “Recession-Proof Real Estate Investing”

Jump to topic:

00:00 Intro

03:08 Is This Time Different? 

04:26 Recession Indicators 

09:21 What Does “Recession” Mean?

20:15 What to Do During a Recession 

27:38 Are We in a Recession?

Check out more resources from this show on BiggerPockets.com and  https://www.biggerpockets.com/blog/on-the-market-247 

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