> But now, if she buys a home, she needs housing prices to keep going up to make her decision financially sound. The analysis from 1, 2, and 3 seem obviously f

> But now, if she buys a home, she needs housing prices to keep going up to make her decision financially sound. The analysis from 1, 2, and 3 seem obviously financially bad. Because they stop at a particular point in time. The point of buying over renting, when using a fixed-APR mortgage, is to lock in a monthly rate (that will eventually sunset to only the cost of maintenance and taxes). And peace of mind that only an act of god or being fired will force you to move. This is never guaranteed with rent, unless you have one of those multi-decade leases. And good luck finding a house with a multi-decade lease. For an investing analogy, buying a house is like buying an annuity. Not buying the market. When a person buys an annuity they are still considered to be "investing".