{"id":33571,"date":"2022-10-27T09:11:49","date_gmt":"2022-10-27T16:11:49","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=33571"},"modified":"2024-11-27T05:36:14","modified_gmt":"2024-11-27T13:36:14","slug":"what-does-a-recession-mean-for-me","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/what-does-a-recession-mean-for-me\/","title":{"rendered":"What Does a Recession Mean For Your Housing, Job, and More?"},"content":{"rendered":"

If the ongoing talk about whether we\u2019re in a recession<\/a> has you worried about your job, your home, and affording everyday necessities, you\u2019re not alone. Among 2,000 people in a recent survey<\/a>, 59% expected a recession by the year\u2019s end, with inflation (88%), housing costs (61%), and rising interest rates (56%) among their top concerns.<\/p>\n

President Joe Biden said <\/a>this month that a \u201cslight recession\u201d is possible, adding, \u201cI don\u2019t anticipate it.\u201d Yet JPMorgan Chase CEO Jamie Dimon expects that the country will enter a recession within six to nine months<\/a>, and 72% of economists<\/a> this summer predicted a recession by mid 2023.<\/p>\n

As financial experts keep tabs on the economy\u2019s pulse, you might wonder, \u201cWhat does a recession mean for me?\u201d Let\u2019s take a look at what a recession<\/a> entails and how this might impact you.<\/p>\n\n\n\n\n\n

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Are we currently in a recession?<\/h2>\n

Frankly, that depends on whom you ask. We\u2019re in a recession if you follow the general definition<\/a> of one as \u201ctwo or more consecutive quarters of a negative growth rate of gross domestic product\u201d (GDP<\/a>). The GDP, or the total value of everything the United States produces<\/a>, fell 0.6% during the second quarter of 2022<\/a> after dropping 1.6% during the year\u2019s first quarter, data shows.<\/p>\n

However, the nonpartisan National Bureau of Economic Research<\/a> (NBER) of Cambridge, Massachusetts, says no, noting that a recession lasts more than a few months and is \u201ca significant decline in economic activity that is spread across the economy.\u201d<\/p>\n

Robert Dietz, chief economist of the National Association of Home Builders (NAHB), said<\/a> at an October conference that he\u2019s noticed a recession, citing the two quarters of GDP decline, a slowdown in construction, and other factors.<\/p>\n

Meanwhile, other financial experts agree with the NBER, even if they foresee a recession around the corner. Tim Holland, chief investment officer at Orion Advisor Solutions, for instance, said<\/a> in one news report that he had \u201ca hard time believing the economy is in recession today, given a strong labor market and corporate earnings growth.\u201d<\/p>\n

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What causes a recession?<\/h2>\n

A recession doesn\u2019t occur by flipping a switch. Rather, it\u2019s a tumbling chain of events that shrinks the economy<\/a>, notes The Washington Post<\/i>: \u201cIf the price of a hamburger goes up, you might stop buying hamburgers. This would impact a restaurant, and that would impact a server.\u201d<\/p>\n

The investment and savings app Acorns<\/a>, which has over 11 million users, says several factors can cause a recession, including<\/a>:<\/p>\n