things like 2 bedroom/1 bath SFH or even condos/co-ops will become sought after, and the larger houses will have trouble selling?
May not matter whether smaller homes are more desirable. No one will be able to get financing to buy anything, so no one will be selling whatever they already own.
Follow the law of supply and demand 
Ask yourself if there will still be a demand for it.
Smaller homes will be more desirable… it’s cheaper, easier to maintain, low cost, low tax…
recession and energy crunch ??? both wont happen. Energy prices are falling and fast right now. if theirs a recession, theirs less demand = lowering costs for energy.
I would go after cookie cutter homes. but gl right now getting a buyer. buying and holding properties has never looked better.
Im never much into liquid assets, so I will have to say no to that