They are about 25% depressed.

Originally posted by @Jack Orthman:I see where gray colors are the trend, but throughout my entire life I always thought the consensus was that gray and blue are depressing colors.

If you want to hear about struggle, talk to someone who lived through the 70's or read about someone who lived through the great depression.

People increased occupancy by either moving in with family or friends so the demand went down but the banks were holding many foreclosed properties empty so the supply also diminished.There is no way of knowing if the next large recession/depression will behave similarly so the safe investor should be in a position to cover extended periods of reduce rents and potentially long periods of vacancy.We have been RE buy n hold investors since the mid- 1970s and have never experienced a significant rent decline in our market but in that time we have seen significant rent declines in other markets. 

The great depression crash was 7 or 8 years for full recovery. 

You're absolutely right that compared to SF, Oakland is relatively depressed.

And yes, this happens in more socioeconomically depressed areas because they still have the old windows, so on and so forth.

Definitely a depressed area, at least it was at that time

I could show you plenty of mismanaged towns in booming areas (look up Bell, California as an example) and also show you thriving towns in depressed areas. 

It's economically depressed but stabilizing, rents are climbing to a bit over half what they are in Asheville, and there are distressed sellers there who aren't getting multiple offers on their property.