If you do some research and don't have to sell at a specific time, you should do well in RE.
I am most concerned about the average hard working guy or family being able to afford anything anymore. Its like the elite and the left would like nothing better than most people living like the old soviet union while they take the good property for themselves and make it so prohibitive to own anything.
In my neck of the woods, most people in their 30's don't even fathom home ownership other than living many to a single house or buying a multiple family house while living themselves in the basement.
That's not exactly diversification since storage is connected to RE and is based on RE. But for now storage should do pretty well as people sell, store their furniture and rent. You can probably get them for a few years while they wait for the RE market to shake out. But after that, lots of luck.