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I live in Minnesota and I'd be willing to bet good money that 95% or more of houses have basements around here. The reason I've heard for this is that when putting in the foundation it's nesessary to extend it down into past a frost line, which is the depth of the soil that will freeze and shift during the winters. The frost line around here is apparently so deep (5 feet is sticking in my mind but I have no idea if thats accurate) that the relativly little extra cost to just remove the extra soil and have the basement is the smart route to go. Again, this is just what I've heard and I have no resources to back me up but it's 2am and I thought I'd throw in my two cents.
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