LL are more likely to sell when they have to go through the hassle of an eviction and have the unfortunate event of having someone live rent free in their unit for up to a few months.Unemployment in San Diego is significantly higher than the national average (estimated at over 30% in San Diego, nationally the rate is ~15% - So our unemployment rate is near double the national average) and higher than during the Great depression (it is at an all time high). 

Often in areas where the construction costs are high or where rents are depressed there can be a big disparity in the two numbers

In the case of a recession/depression the pool of renters would actually increase, not decrease. 

But the rest of the town is fairly depressed economically.Might use VA loan to get the 0% down.

Example: median sales prices for properties in Maine were up 15% last year, in the county we're looking to buy, they're up 31%.The appraisal used comps roughly 40 miles away, outside of the mountain/tourism area, closer to some fairly depressed, more densely populated areas.

Though builders continue to see strong buyer traffic, recent increases for material costs and delivery times, particularly for softwood lumber, have depressed builder sentiment this month.

If this was the case then London, Paris, and NYC which have all weathered various short term disasters in their histories like a blitz, occupation, fires, plagues, riots, and great depressions wouldn't be the great places to live and be so resilient.

I just saw this and it was very depressing. 

Maybe the last crash scarred the young people like the depression scarred our grandparents, but it’s the go to excuse for at least 15 years now.

And I'm only collecting $910 in rent.Berkely's tough value-wise - property values are depressed compared to much of the surrounding area and I believe it's in part due to the rental rules the muni has set.