I have argued this point professionally, in my own research, and sitting around the dinner table.
Owner-Occupants are not necessarily walking away from their homes because they are upside down, i.e negative equity ( Thanks Tom). Just like they have not in the past.
If they have the means, they are staying put.
After all, before the bubble, most folks who were purchasing homes to live in them saw them as long term investments.
Or places to raise families, have children, and do never ending yard work.
