Benefits of Homeownership A Farce?

Matt writes: "SmartMoney stock screening expert Jack Hough applies the math and logic used to screen equities to homeownership. The surprising conclusion: contrary to popular belief, it makes more financial sense to rent rather than own.

Excerpt:

Shares have been remarkably consistent over the past two centuries in their 7% real returns. In Jeremy Siegel's book, "Stocks for the Long Term," he finds that real returns averaged 7.0% over nearly seven decades ending 1870, then 6.6% through 1925 and then 6.9% through 2004.

The average real return for houses over long time periods might surprise you. It's zero.

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