Is your argument that landlords are by and large rational actors? Yes, I will concede that landlords are by and large rational actors, although I'm not sure tha

Is your argument that landlords are by and large rational actors? Yes, I will concede that landlords are by and large rational actors, although I'm not sure that means as much as you seem to think it does. A landlord is investing, and usually willing to consider returns over a long term. Landlords I have known are not profitable every year, and almost never from day one on any given property. I have known one landlord--and heard of others--who have seen multiple years of profit on a property get wiped out by a single bad tenant. But that's okay! Most landlords (not the big corporate landlords for which the economics are very different) console themselves in unprofitable times with the knowledge that at least they have the underlying asset, and it should increase in value over time. > Renters have their rent go up every year. Owners are always ahead after 30+ years. Look, if the only thing you care about is $X out every month, then sure, fine. Buy a house, don't look back, and whatever you do, don't every tote up every penny you've spent on everything related to your house and chart it against S&P Index returns over the same period of time if you'd rented a smaller apartment instead.