The Federal Reserve's next monetary policy meeting is Tuesday and Wednesday. The only debate among Fed-watchers is over how far and how fast the Fed will lower rates. The prospect of lower mortgage rates should revive home buying and selling from its currently depressed levels. But not by too much.

The main barriers to a more vibrant housing market are a lack of supply, the dramatic increases in home prices since the pandemic and the likelihood rates will remain relatively high compared to the 3.3% level of early 2022. The cost of ownership has gone up sharply in five years.

Does it still make sense to buy and own, especially for first-time home buyers? When comparing the average or median home price with the average or median rent price, homeownership comes up as the less valuable option compared to renting in many markets, including the Twin Cities. Yet a deeper analysis into the costs and benefits of owning by the Urban Institute think tank makes a strong case for ownership.

Of course, renting is usually the smart option or the only option for many households, particularly those living with financial insecurity. It's cheaper and easier to get out of a lease than it is to sell a home during tough times. Renters don't worry about coming up with a down payment. Repairs and maintenance are the landlord's responsibility.

That said, in "Measuring the True Value of Renting Versus Owning a Home" the researchers find owning trumps renting after diving deep into different value measures. For instance, the 10% baseline difference between the value of owner-occupied and rental homes widens to 33% after researchers include the number of bathrooms, square footage and metropolitan area. Add in interior and exterior conditions, garage and solar panels, owner-occupied homes are 37% more valuable.

"Though buying a home has become more unaffordable, it doesn't mean that renting has become more valuable," they write. "Our analysis shows homeownership is still often more cost efficient for consumers because owner-occupied housing is typically larger and in better condition." Their judgment comes before taking account of appreciation, equity buildup and the financial security from relatively fixed monthly payments.

There is much to be said for homeownership so long as the purchase doesn't make you house poor and you can plan on being in the home for the long haul, say at least five years, to justify the upfront costs of ownership.