The Katrina's displaced population was not in the same economic bracket.  

At the price of $1 280 000 with an annual revenue of 88k, bank won't finance 75% of your purchase price, but rather 75% of the economic value determined by revenue and expenses.

I'm 23 years old and will be graduating from UCLA with a degree in Economics in 2018.

I bought some property in Oakland and Richmond during the financial crisis- but I agree, things are a little hot in the Bay right now..

If it is in fact a long term hold what do those economics look like?  

Finance and Economics.

The worst period for me was leading up to the housing crisis where my tenants were buying homes with NINJA loans. 

(don't worry I didn't' pay a dime over appraisal LOL)I moved here for economics, I personally expect home trends to increase for a few years with normal hiccups along the way, I'm riding the wave upwards.

Do rents generally go down in an economic downturn?  

(West Oakland is usually 2 steps forward, 1 to 2 steps back through each economic cycle.)