It's an argument that's highly dependent on how high rents and purchase prices are correlated. In many markets the two are somewhat aligned, but on occasion the

It's an argument that's highly dependent on how high rents and purchase prices are correlated. In many markets the two are somewhat aligned, but on occasion the two diverge significantly. For example, if the cost to rent is $3k and the monthly mortgage on a comparable place (including insurance, RE tax) is $4k, then in the longer term it may make more sense to purchase. Over time the $1k difference will grow smaller and equity will be built up. But what if there's a "frothy" market where investors are bidding up the price of an apartment and after taking ownership they're renting them out rather than living in them. So it's $3k to rent, but $1.2M to purchase, meaning the monthly mortgage is closer to $6k. Well now it makes sense to rent and invest the difference outside of your local real estate market. This obviously looks like an extreme example, but during the housing boom and happened in Miami, Vegas, and many other cities, and it's arguably occurring in many localized markets today.