The 1980's bust took 20 years for inflation adjusted prices to return to there previous inflation adjusted values. That's a very long time to wait for prices to return to their previous valuations.
So in the long run, the most important thing you can look at is what is the capitalization rate. In some cases I have found it is less than 4%, which is less than a long term government bond of 5.75% which is 100% safe.
So why invest in real estate that has rates of return that is less than bonds which are totally safe?
It seems like a lot of risk, for a very low rate of return.
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