Is Multifamily Truly Recession Resistant?

[Ryan Daigle]

"The asset class is known for its survival during a downturn, but with so much class-A product on the market, will its reputation hold?"

Looks like we're about to find out!

I actually think this upcoming recession will be somewhat unique (aren't they all?) in that the effects of COVID-19 will hit the C-class assets much harder since most white collar workers are more insulated from this shutdown. So tenants in C-class properties may not have anywhere else to go, but that doesn't mean they're going to be able to pay. Whereas the folks in the A-class assets will weather the storm much better and not need to step down at all.

Obviously speculation, but will be interesting to see what stats of this recession compared to others when we have them.