Housing rental, purchase not always clear-cut

It's the American dream, but it isn't always a sweet dream, according to a research firm.

Owning one's own home has historically been a good idea, particularly if the numbers are right.

According to HeroWallet, a workforce optimization and research firm, for more and more people, particularly with younger workers, the numbers show it's better to rent than to buy.

The researchers examined 20 U.S. cities for home appreciation and historical behavior of stock and bond markets as well as the cost of renting relative to buying a comparable home.

That last figure is referred to as the rent-to-price ratio, and is about 5 percent nationally.

What that means is that someone who makes about $50,000 a year would make more than 50 percent in additional wealth over the next decade by renting and investing instead of buying a home.

It does make sense for the same homebuyer with a 7 percent rent-to-price ration to buy, which would pay off as soon as four years.

But someone with a $50,000 income in an area with the average 5 percent ratio would be better off investing their extra money than owning a home for 30 years.

Since 2004, home ownership has been declining, to 64.4 percent, the lowest in 19 years.

So are millennials on to something?

Not really; the fact is, they can't afford to buy, since many of them don't make enough money, don't have enough money saved and have too much college debt to take on a mortgage.

It's one of those cases where natural market forces regulate themselves.

For McCook, however, the question is not so much whether to rent or buy, but whether any kind of suitable housing can be found.

Apartments, multiple- and single-family dwellings for rent or to buy are all needed for our community to thrive.