Find a depressed town with one big employer.My town in the worst place to live in Kansas according to Google, I don't carry but there is always a sidearm within arms reach.

For work invest in some of the depressed areas like Flint or Detroit or Grayling.

People who wish for a recession are just admitting they can't compete unless prices are significantly depressed. 

But there are also areas of depression too it looks like.

Investing is about building equity AND generating cash flow.Now, there are two ways to get cash flow.First, buy the cheapest D Class property you possibly can in the poorest, most depressed town in the country or nearby and earn a commensurately large amount of rent per dollar invested.Second, buy a nice property in an in-demand area, earning little to no cash flow per dollar invested immediately, hoping that the area will improve and rents will one day rise.Now, you say you are buy and hold oriented.

As you mentioned, CA has proven to be a good place for appreciation over the years, but is in a depressed state and will remain that way for at least another 18 months.

However, everything I read is that the market is so depressed and the vacancy rates are so high that it doesn't make sense.

The housing value of this neighborhood is slightly depressed because of the foreclosures and high rent to ownership ratios.

The market is depressed, because of the budget issues. 

Status quo means depressed prices and high yields for at least another 4 years is the general comment.