$50.000 in 1960 was about $221.000 in 1990, so in real terms the house increased an amazing 4,6% a year. I guess the surrounding area changed dramatically in the 30 years he owned the house (more urban, closer to good services). With a good link to labour market the area/house would increase in tandem with US economy and income - wich was great 1960-1990.

Since the middle ages house prices have correlated with income, and since then longer periods with real income gains over 1-2% (as 1960-1990) has been extremely rare. My guess is it will be rare the upcoming 500 years also. And - even after a house price bubble fueled financial crisis, house prices are high (compared to income) thanks to extremely low interes rates.

This was northern Westchester County, New York, which has changed surprisingly little since the 1960s; it has always been affluent but has become more desirable over time as the southern part of the county became overdeveloped. Not really more urban; in fact it's the combination of the semi-rural character and proximity to New York City that attracts people to live there. Lots of people from NYC have summer homes there, which was also true when I was growing up (more than half of our neighbors were summer people and their houses were vacant from September until June). There is train service to New York (which was also true in the 1960s), so many of the younger families who live there tend to work in the city.

With "more urban" I mean what you descibe, from a "summer home out of town" to a permanent house for familys who commute to NY every day. "Far out suburb". That is a big change, even if it mostly is mindset/mental.

If you have the financial means and have a stable job, I suspected it is the best for the family to own a home in suburban areas. However, if you are not ready to settle for longer period in your place, renting is the best option.

Another option is rent to own home, this is known as "Try Before You Buy". To help you also to decide whether to rent or to buy a home please study and research the advantages of renting vs owning a home.

Renting might be a good option if you didn't already own a home. If you already had a home mortgage I'd pay off your debt ASAP and buff up your E-fund.

With this economy and the uncertain job market it would be advisable to have a sizable E-fund of 3-9 months worth of expenses.