Well it didn’t during the last downturn starting in 01. The Pacific NW got hit pretty hard in comparison to the rest of the country. The Nasdaq crashed wiping out the dotcoms and technology, then that was followed by 9/11 and a big aerospace downturn. The impact on RE was muted due the FED taking interest rates to 1% but property sales south of the 90 where many Boeing employees lived went pretty soft, keep in mind they did not have bubble pricing to begin with.

Also there was a big aerospace downturn in 93 and 94 that took home values down about 10%. I bought a townhome in Kirkland Wash in 93 about 10% below my next door neighbors place (same unit, same view) that they purchased in 91. Kirkland is right next to Microsoft but Boeing layoffs still impacted the area.