According to wedding etiquette, this is correct.
It's actually inappropriate for the mother of the bride to host the bridal shower, as it implies, "Come, give my daughter gifts."
Of course, that's just old-time tradition... many people don't abide by those 'rules' anymore.
Of course, the old-time tradition didn't have young couples living together for years prior to marriage either, but many people don't abide by those "rules" either!
I'm in Southern CT, and I think you'll have a tough time getting a clear cut answer on this. The last wedding I was in, the bride's aunt paid for all of the flowers and centerpieces while the mother of the bride paid for the venue rental. Bridal party split the cost of other things (the food, favors, etc.) but it wasn't that expensive for the six of us. In other weddings, however, it's been up to the bridal party to handle all costs.
I think it depends on a lot of factors - around here, moms will chip in to give her daughter "the shower of her dreams", especially if she's the only girl in the family. They'd also be likely to help out if the bridal party was young or not financially able to contribute a lot without it becoming a hardship.
I don't really understand all the etiquette books saying that the family of the couple can't host without making it seem like a 'gift grab'. I always thought it was expected that a wedding shower would be held...I think the eyebrows get raised when you start hosting engagement parties, jack 'n jill showers, and bachelorette events (not just close friends, but full on EVENTS) in addition to the shower.
That's just me, though - as I said I think you'll get a lot of different answers no matter who you ask!