The New York Times proposes real estate as a bet against recession.  They recommend commercial real estate instead of residential real estate. 
Commercial would be offices, industrial buildings and rental apartments. 
In recent years in Phoenix we saw a drastic decline in available multifamily building.  The decreased supply raised not only prices but rents.  Now that the housing market has cooled, more people are renting. In fact rents went up dramatically in 2006 and are expected to rise 3.5% in 2007.

It will take a while before inventory catches up with demand though larger complexes have a vacancy rate of just over 11%, the smaller building have lower vacancy rates, especially in Central Phoenix, North Central Phoenix and South Scottsdale.

Besides apartments there are offices, retail and industrial buildings.  Should you be interested in investigating investments in these commercial products please call me.  Commercial is my other real estate specialty with a focus on rental apartments in Phoenix.
You can also consider REIT's as a hands free real estate investment.