Martin Dasko

Thu, Jun 5, 2025, 9:03 AM4 min read

According to research from Realtor.com, almost 30% of homebuyers admitted that they would be more likely to buy a home during a recession, with 63.4% noting that they felt a recession was possible within the next year.

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On the other hand, only 15.8% shared that they would be less likely to purchase a home during a recession. While it’s difficult to predict what will happen in the economy, the belief is that if the economy were to enter a recession, the Fed would have to respond by lowering interest rates, which could help with housing affordability concerns.

Here are top reasons why it may make sense to buy a house when the economy is down.

“Buying real estate in a downturn is one of the rare moments when the market tilts in favor of the buyer,” said Paul Carassone, real estate expert and co-founder of Carassone Properties. “When the economy softens, consumer sentiment tends to freeze up, but that’s exactly when opportunities emerge.” A recession could allow potential homebuyers to enter the market as interest rates finally cool down and sellers become more motivated.

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Another significant benefit for buyers is that they have time to make a decision instead of rushing into a home purchase. “A market slowdown gives buyers more time to make decisions, conduct inspections and avoid the pressure of rushing into a purchase,” said Alexander Kalla, realtor. When you have time on your side, you don’t have to rush to make a decision on the most important purchase of your life. You also don’t want to purchase a property without a proper inspection because that could cost you thousands of dollars in repairs.

An economic downturn could also benefit buyers looking to purchase their first home, especially those who have been saving for a long time. With money saved for a down payment and lower interest rates, mortgages could become more affordable for a wider range of Americans.

Carassone pointed out that sellers become more open to negotiations because the competition thins out and properties that might have sparked bidding wars in a stronger market can be acquired at a discount. With fewer buyers in the market, there’s less competition and sellers may be more open to price reductions or concessions. This means that buyers can often secure better deals.

“You’re not just purchasing a home, you’re positioning yourself for significant equity growth when the cycle inevitably rebounds,” Carassone explained. If you’re financially stable and ready to become a homeowner, a recession is often the most strategic time to buy property because you’re setting yourself up for the future.