Assume he paid cash. If he had instead invested $200k in the S&P 500 in 2011, his account would be worth ~$756k today. So he essentially paid $256k, or roughly

Assume he paid cash. If he had instead invested $200k in the S&P 500 in 2011, his account would be worth ~$756k today. So he essentially paid $256k, or roughly $2k/month, for housing over 10 years. If he could have gotten a similar place for an average over 10 years of $2k/mo, it's breakeven. That's before paying property tax but also before writing off interest & tax. Although this ignores the fact that you can make what's essentially a $200k investment with only $40k, and you still have to find a place to live - and the rent is virtually guaranteed to go up -- if you go the S&P route.