Honestly I feel bad for the guy in Peoria. My parents are still trying to sell their $100,000 home (which they bought in 1983 for $50,000)just outside Detroit for about 5 months now. Yes they own it free and clear, but I think at this point they will need to take a 25% haircut to get it sold. Meanwhile, absorption in my neighborhood in SD is within days, or weeks. Also not sure how much a $50,000 house in SD would get you in 1983, but I guarantee the appreciation would make it a much better investment.

Also, when looking at statistics of those owing money vs. those owning a home free and clear the data is slightly skewed because many of those in the city are much younger; therefore making the data much more irrelevant.