> The unlucky who buy in declining cities have a huge part of their wealth eroded leading to virtually impoverished retirement.

This is where my fear of the downside comes from. My parents actually met in the 60s in LA, but decided to move back to WNY. I don't regret the fact that they did, but they had much different economic experience than they would have if they remained in California.

They now live on a property on about 5 acres. My Dad did much of the work on it, and it is beautiful place, but they will probably never get the money the put into out of it -- especially inflation adjusted.

If you end up on the downside of one of these economic decisions, it can really change your financial outlook for potentially the rest of your life.