Real estate values don’t go up when a recession hits for several reasons:
1) operations / cashflow drop. Lower revenue means less profit. Less profit means lower value.
2) banks have trouble with other assets and are less likely to provide new debt.
3) raising capital / equity for new deals is tough because everyone is hurting.
4) fear and future prospects look grim. Bankers and investors are afraid to do new deals.
@sweatystartup@Jimmydahitman60 This makes zero cents. Literally. If the all comes through (spoiler alert it won’t) rates will tank and real estate values will go up substantially