In Tuesday’s RECON, Real Estate Center Chief Economist Mark Dotzour raised the possibility of a national recession in the next 12 to 18 months.
That elicited this question from a RECON reader: How does one go about recession proofing a real estate business and personal portfolio?
Dotzour’s reply: “There is good news. Although the United States could have a recession, it’s highly possible that Texas won’t participate in it. Our economy is not overheated in the housing market, and we don’t have a lot of ailing auto plants in our state.
“When an economic cycle is near the top, the best plan for businesses is to not take on a lot of new debt. If revenues start to flatten, the people who can continue to meet their debt obligations will be around for the next cycle.”