We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.
While talking to an expert last week, I realized I might have to rethink a phrase I’ve been using for years: “The Recession.”
This is Jon Reed with NextAdvisor. I’m in my 30s, so to me, “the Recession” is a particular point in history – the time period starting around 2008 and ending whenever you started feeling comfortable about money again. (I make my living as a journalist; I may never get there.)
You’re reading the latest edition of NextMOVE, a free weekly newsletter from NextAdvisor that’s all about the housing market.
In your inbox every Thursday
- A valid email address is required.
- You must check the box to agree to the terms and conditions.
- You must check at least one of the boxes to proceed.
Thanks for signing up!
We’ll see you in your inbox soon.
But The Great Recession, as we often call it, isn’t the most recent recession. Officially, the most recent one lasted a hot minute (about two months) in spring 2020. Unlike its predecessor, it wasn’t caused by the underlying structure of the economy (or financiers gambling with the risk associated with people’s home loans), but by COVID-19.
Unofficially, we might be in a recession right now. We won’t know until the National Bureau of Economic Research decides if this is one or not, and it might be over by the time they do.
Not every recession is as scary as the one I still call “the Recession.” They’re all unique creatures of their own economic environments, and they affect everyone differently.
Take the housing market. Some experts think we’re in a “housing recession,” although others don’t think that’s the right term for it. What economists mean by a “housing recession” is a decline in some specific metric. Right now, that includes slowdowns in home construction and home sales. It doesn’t mean home prices are crashing.
A recession doesn’t mean the same thing to every market or every person. Your job could be particularly vulnerable in the current economic climate, or you could have one that’s genuinely “recession-proof.”
The best way to deal with it is to be …….