Rental rates are based on current market values. Mortgages are based on afixed amortization schedule. The farther into the term, the less the cost is monthly due to inflation. That’s why long term ownership always costs less than renting provided taxes don’t clobber you.
Exactly. The longer the term, the more attractive the ownership option gets.
The problem is that for more and more people, they have no way of knowing up front how long they will own their homes. This really hit home in the last few years when you had a lot of people unemployed for long periods of time because: (1) they couldn't find a job near their homes, and (2) they were underwater on their mortgages and couldn't relocate to take a job somewhere else.