Appreciation in SFHs in Rural America (Appalachia OH/KY)

[Joe Tanner]

So, I understand that you shouldn't count on appreciation when valuing a property for investment purposes, but I'm wondering if anyone has done extensive research and attempted to project the value of SFHs in rural areas, but especially Appalachia?

Basically, I'm wanting to feel out the opinions of anyone who lives in, invests in, or has given these markets any thought on the topic of REI.

Here's some initial thoughts to get the discussion going:

Clearly, these places have fewer major employers... on the other hand, many of these places are greyer than ever--which can be interpreted as having a sizeable proportion of the population with a guaranteed income (i.e., SSI/SSDI/pensions, etc.) and low incentive to leave for more urban markets.

On the other hand, as agriculture and energy jobs--the main reason for moving to these regions, for many--become totally obsolete or redundant... and as the major urban markets offer more attractions than ever... I wonder if it won't get to the point where there is a second major rural flight, with many places left as actual ghost towns.

As for myself, I happen to live in one of these areas, and would love to dive into REI--while the local listings are certainly more affordable, thoughts like those mentioned above cause me to question whether I shouldn't confine my investing to the nearest metropolitan area and its immediate suburbs.