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More than half of commercial real estate leaders—including those with multifamily property rentals—believe a recession is likely this year, according to JPMorgan Chase’s 2023 Business Leaders Outlook: Commercial Real Estate.

We asked three experts—Al Brooks, Head of Commercial Real Estate for JPMorgan Chase, Victor Calanog, Head of Commercial Real Estate Economics for Moody’s Analytics, and Ginger Chambless, Head of Research for Commercial Banking at JPMorgan Chase—to weigh in on the impacts of a possible recession on the multifamily property market.

They all agreed: Recent economic data has been mixed. And uncertainty is one of the few things you can count on in the current economy.

Why the economy is teetering on a recession

“The economy is continuing to expand,” Brooks said. “But we’re also not getting inflation tamped down as much as we’d hoped.” As a result, interest rates are likely to rise even further.

“We expect the cumulative effects of the Fed’s interest rate hiking cycle to more broadly slow economic momentum in the coming months. The U.S. could enter a mild recession later in 2023,” Chambless said.