According to a recent report by Morgan Stanley, homeownership in the United States is declining while renting is continuing to rise. The Census Bureau reported that the percentage of people who owned a home had dropped to 65.9% during the second quarter, its lowest level since the first quarter of 1998.

However, Morgan Stanley analysts claim that rate is more likelty around 59.2%, factoring in delinquent mortgage borrowers (the ones who are likely to lose their homes at some point).

The dip in home ownership has done more than just line the pockets of landlords. It has also created a base of Americans with no home to rely on in times of financial need. Millions of owners can tap into their home's equity in times of financial stress or to pay for cars, college tuition or other major expenses.

Paying for a home is also a type of "forced savings," said David Crowe, chief economist for the National Association of Home Builders. He explained that, after interest, mortgage payments go toward paying down the loan balance -- and for homeowners who end up in the right type of loan the ending balance can be significant.

There are also less tangible benefits to home ownership. An increase in home ownership overall tends to improve community stability, according to "The Social Benefits of Homeownership and Stable Housing," a report released last year by the National Association of Realtors (NAR).

On the other hand, there are a few benefits to renting. Renters are much more mobile: They can move to take a better job if the opportunity arises. And, more often than not, renting is cheaper than buying. If renters are disciplined about investing those savings, they can come out with more wealth than buyers. Plus, renters don't lose their shirts in housing busts. "Often maligned as a product on which you 'throw your money away,' rentals have become a much more valued housing option," said the Morgan Stanley authors.