8. West Palm Beach, Fla.
The West Palm-Boca Raton area might sound glamorous with its beaches and million-dollar ocean-front homes. The reality is much different as the median home is worth $225,000, down 39 percent the past three years. Prices are expected to fall a further 22 percent this year as foreclosures continue to affect the housing market. Unemployment was recently at 12.3 percent.