Recession-Proof Real Estate Investing? 5 Markets for Stability

Choosing the right real estate investment to add to your portfolio requires ample research and extensive knowledge about the market that you're investing in. A poor decision can result in your portfolio dropping substantially in value at a time when you're trying to increase your gains. When the broader markets start to dip, and the economy enters a recession, selecting the best recession-proof real estate investments becomes even more important.

The most rewarding investments are ones that occur in recession-proof markets, which are areas where homes are in high demand regardless of how the economy is performing. Not every market performs the same. By investing your money in homes that are situated in recession-proof markets, you can benefit from consistent rental income, moderate appreciation even in down economic times, and continued rental increases YOY. 

Why Now Is a Great Time to Invest

The recent market trends indicate that 2025 is the perfect time to invest in real estate as long as you focus on the right markets. In recent months, interest rates have continued to increase. However, these increases have slowed and may come to a stop by the end of this year. Buyer demand is also slowing down somewhat, which should make it easier for you to invest in real estate without needing to make numerous bids before having one accepted.

While the current state of the economy is adversely affecting the real estate market as a whole, there are some individual markets that appear to be recession-proof, which means that they will perform like they do when the economy is healthy. 

Wondering what happens to the housing market during a recession? Check out our article! 

How to Identify a Recession-Proof Market

When identifying markets that are considered to be recession-proof, there are many factors that should be considered, which include everything from the average sale price to the population numbers. The following offers a comprehensive overview of four of the top recession-proof markets you can invest in throughout 2025. 

1. Kansas City, MO 

As the largest city in Missouri, Kansas City has long been a popular destination among California residents as well as people who are moving from other large Midwest cities. There are numerous pieces of data and statistics that point towards Kansas City being recession-proof. For instance, the median sale price in the city has continued to increase, which means that buyer demand isn't dropping like it is in cities and towns that aren't recession-proof. 

Home Prices

The median sales price for Kansas City is $267,000, an increase of 13.4% year-over-year!

Throughout the coming months, home values in Kansas City should increase since there are no signs that the recession is impacting the local real estate market. Even though homes have become more expensive in Kansas City, the median price of $267,000 is highly affordable compared to many popular markets throughout the U.S. Keep in mind that rents don't fall much during recessions, which gives you the opportunity to charge relatively high rents even when you're able to purchase a property at an affordable price. 

Home Sales

Over the past few years, home sales in the city have been relatively consistent, with sales dipping mostly in December, making winter an opportune time to buy. 

Population Growth

Over the past decade, population numbers in Kansas City have been steadily increasing. The current population is well over 500,000 and has increased by more than 50,000 since 2010. If you're going to be renting out your investment property, you can be confident that there will be a large number of people looking to rent. 

Ready to invest in Kansas City real estate? Check out our turnkey rental properties for sale!

2. Akron, OH

Akron, OH is another popular Midwest city with affordable home prices that investors can take advantage of.

Home Prices

The current median sale price is just $130,500, which is 13.5% higher (on average) than last year (2024).

Days on Market (DOM)

Another sign that Akron is a recession-proof real estate market is that the number of days that homes have remained on the market before being sold has been consistent. In December 2023, homes were on the market for an average of 33 days before being sold. One year later, homes are still on the market for an average of 33 days before being sold. 

When a recession occurs in markets that aren't recession-proof, it's common for buyer demand to drop considerably, which leads to home inventory staying on the market for much longer than usual. Even with a recession nearing, Akron's real estate market is very nearly maintaining the performance it had when interest rates were at their lowest. 

3. Lehigh Acres, FL

Lehigh Acres, FL is among the strongest real estate markets in the U.S. and is ideal for anyone who's looking to invest in real estate during 2025.

Home Prices

With a median sale price of $345,000, 1.4% less than it was one year ago, Lehigh Acres growth has stabilized. But keep in mind the average home price here in 2019 was $186,000! That's a lot of growth in 6 years, and with population still growing, there's a good chance this housing hot spot could see steady appreciation once again. 

If you're looking to invest in real estate that will provide you with consistent income, the home you end up investing in should appreciate in value over time because of the overall health of the Lehigh Acres market. 

Population Growth

Keep in mind that the population in this city has risen considerably over the past decade and will likely continue to do so in the coming years. In 2011, Lehigh Acres was home to a population of around 92,000. The total population has increased every year and is now situated at just under 125,000. As an investor, more people moving into the city should make it easier for you to find tenants and keep rents high.

Need help choosing a recession-proof real estate market to invest in?

4. Indianapolis, IN 

Indianapolis, IN is another popular real estate market with affordable home values. As of December 2024, the median sale price for a single-family home in Indianapolis is $245,000, which represents a YOY increase of around 4.3%. 

Five years ago, the median sale price for a home was a little over $136,000. By investing in the Indianapolis real estate market, you should have peace of mind that your property will appreciate in value over time.

Days on Market (DOM)

Homes only remain on the market for an average of 30 days before being sold, which indicates that there are many buyers and renters on the market. Buyers who can't afford to purchase a home because of the recession are more likely to rent, which means that you should be able to bring in new tenants without issue. 

Population Growth

Like other cities on this list, the population in Indianapolis has been on a steady incline for the past decade. In 2013, there were around 844,000 people living in Indianapolis. Today, the population is over 900,000 when taking current estimations into account. 

Recession-Proof Your Real Estate

Real estate is one type of investment that you don't need to stop adding to your portfolio when a recession hits. During poor economic times, you may be able to keep your income high and reduce portfolio losses by investing in markets that are considered to be recession-proof.

The four aforementioned markets have all proven to be popular destinations among buyers. When you invest in one of these markets, it's likely that the value of your property will continue to increase the longer you hold it. 

With turnkey rentals in recession-resistant markets, we're ready to help you build wealth no matter the economic cycle!