5 of 5
BACKNEXT
2nd runner up: Sioux Falls, S.D.
Foreclosure rate: One in 492 homes
Percent increase: 116%

Throughout the housing crisis, South Dakota has been a rock. Home prices have been stable, and foreclosures have been low. In fact, the worst one-year decline in home prices in Sioux Falls came in the first quarter -- of 1982.

It was one of this year's Best Places to Launch, and it bills itself as the "Best Little City in America."

So seeing the city of 200,000 on the top of a foreclosure list is shocking to many. In fact, realtor Cindy Oyen of Ameri-Star Real Estate couldn't believe the city's foreclosure rate had shot up almost 120% in the last quarter.

After all, she said, "Midwesterners are more conservative. They don't take risks. They rarely do ARMs and they're good about paying back what they owe."

As a result of the conservatism, the housing market never boomed in the way it did in California and Nevada, which still have the highest rate of foreclosures anywhere in the country, along with Florida and Arizona.

That means the foreclosure rate in Sioux Falls is still a paltry 1 in 492 homes -- compared to Las Vegas' 1 in 20. But that's still a nearly 120% increase over last quarter. And since few bad mortgage loans were written, much of that jump is attributed to the unemployment rate rising to 4.6%.

But Oyen expects foreclosures to stabilize soon since the economy has remained relatively stable. The unemployment rate is miniscule compared to the national average of 9.8% and that of other foreclosure-wracked cities.

More galleries

Last updated October 30 2009: 12:24 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Source: RealtyTrac
Increase is between the second and third quarters of 2009.
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.