30year fixed mortgage rate of say 3.5% is only ~1-2% higher than the rate of inflation. The cost of owning the house is really just interest + hoa + taxes + up

30year fixed mortgage rate of say 3.5% is only ~1-2% higher than the rate of inflation. The cost of owning the house is really just interest + hoa + taxes + upkeep. You'll get your principal back out when you sell. Over a long enough time period, the yearly home ownership costs will be less than renting. Owning even in SF can still be a better financial decision than renting. There's a lot of tax advantages that you get by owning a home as well. E.g take this place: https://www.redfin.com/CA/San-Francisco/201-Sansome-St-94104/unit-404/home/12402258 https://www.redfin.com/CA/San-Francisco/201-Sansome-St-94104.... Costs about 5.4k/month. Removing principal & tax rebate its likely costing you ~4-4.5K/month. Somewhat equivalent rental is 3.3k/month. https://sfbay.craigslist.org/sfc/apa/d/san-francisco-916-pacific-move-in/7022195137.html https://sfbay.craigslist.org/sfc/apa/d/san-francisco-916-pac... Cost of owning is ~1k/month more expensive. However you've locked in your mortgage for 30 years. Likely after 7-10 years the place you were owning will end up cheaper than renting on a monthly cost basis.