Just wanted to pop in and add my two cents....
I was also quite worried about the safety of a homebirth, until I did some more reading and research - studies are indicating that homebirth is safer (!) than hospital birth. (as some of the lovely ladies have already said.)
This is because:
- you are less likely to have labour stop or slow down if you stay at home - some women have their labour slow down because of the stress of getting to the hospital in labour and being admitted, examined, etc. This leads to having the drip put on, and begins the cascade of interventions. (drip to augment labour leads to excessive monitoring, which together contribute to difficult labour, which leads to fetal - and maternal! - distress which makes a fast delivery necessary, leading to a major episiotomy, forceps delivery, or c-section)
- you are more likely to be allowed to labour on your own time and in your own way at your own home. Generally speaking, most homebirth midwives know that the key to managing labour is "don't do something, just stand there!" To a certain extent, of course - they will certainly be monitoring you and baby carefully, but they know that women have the best outcomes if they are left alone without pressure, or deadlines, or unnecessary examinations, or restrictions.
- going to the hospital exposes you and your baby to all kinds of germs. Hospitals are for sick people.
I gave birth to my third daughter at home, and it was a great experience. I was in the hands of competent women I knew and trusted. My DH was beside me the whole time. I gave birth in my own bath, got cleaned up in my own shower, and crawled into my own bed with my dear little baby and my DH beside me. We slept all together that night, without unnecessary checks or being disturbed by hospital roommates, or things happening in the hallway, or whatever. When I had to go to the toilet, it was my own, right next to my room.
And, I am really NOT a treehugger or a hippie.

I have nothing against the hospital where I gave birth to my first two daughters - they cared for me well. But homebirth was definitely better.
All that being said, however, here in Canada, homebirth is covered by our national health care plan. It is totally free for me, where ever I choose to give birth, which made my decision easier. The decision would have been much more difficult for me if I had to pay thousands of dollars, and I can certainly appreciate that concern.
Read all you can about homebirth (and waterbirth by the way - it's great!) The articles here on BB are an excellent source of information! All the best with your decision, and I hope you get to have a lovely birth experience.