The people in STR as a business, as opposed to just an investment, will be profitable in most economic markets.  

A few general tips - look for markets with strong economic growth - job growth, population growth, network with other investors in your area and check which states they are investing in, for out-of-state investing - work with someone who has your best interests at heart and is also an investor who can easily plug you in with their network (GCs, lenders, PMs).

@Kamryn DeVaultTo invest in a duplex, consider factors like neighborhood quality, economic stability, safety, property condition, cash flow potential, financing options, tenant screening, lease agreements, future potential, legal and zoning considerations, maintenance and management, networking, and starting small and scaling.

And as rates, economic sentiment, politics and seasonality shift in the 3 to 6 months to get market ready it can change by 20- 50k so a little bit of Crystal ball is needed.Best of luck.

What economic stratus are you talking about a shortage?  

The economic benefits could extend to local communities, spurring growth and development across the region.

Are others playing the long game and hoping for appreciation or is there something I’m missing with the economics of North Jersey?

If you want appreciation, identify markets with expanding industries, positive growth trends, and bright economic forecasts.

Can it still afford to print trillions more under current economic conditions?

If they did they would have better economic policies , create safe neighborhoods and investor/business friendly atmosphere, to make their citizens prosper and able to afford the houses they live in, instead of losing it to banks in foreclosures.