The reason is affordability," explained John Anderlik, the acting regional manager in the FDIC's San Francisco office.
"With price appreciation in Nevada, it is getting more difficult for people to afford their homes.These products have become more attractive as affordability goes down."
Nevada has struggled with affordable housing issues as land prices skyrocketed in the past few years.Statewide, home prices rose 18 percent during 2005 and 37 percent in 2004, which enabled buyers to flip their properties if they couldn't afford to pay their mortgages, Anderlik
"They have shown some deterioration," Anderlik
said of Nevada, "but they remain strong compared to the rest of the nation."