Increases in the target federal funds rate have continued into 2023, though smaller than in 2022, reflecting the comments of Federal Reserve Chair Jerome Powell in a Nov. 30, 2022, speech, when he indicated smaller rate hikes are likely ahead for 2023. He also acknowledged the frequency of hikes would continue until inflation growth slows.

Continued rate hikes could mean a potential economic downturn. And this potential is prompting investors to rethink their investment strategies and portfolio construction. Some are focused on defensive actions, like buying more blue-chip equities and bonds. Others are zeroing in on alternative investments such as real estate as a potential inflationary hedge.

While real estate, broadly speaking, is a strong asset category to withstand inflation, not all types of real estate are created equal. In truth, some property sectors are more recession-resistant than others. Workforce housing, in particular, has proven attractive, not only as