> This logic is fundamentally flawed. In my experience it's rarely worth appealing to logic when discussing home ownership. It's just such an emotional subject

> This logic is fundamentally flawed. In my experience it's rarely worth appealing to logic when discussing home ownership. It's just such an emotional subject that rational debate is often hard to come by. 1. Many home buyers make purchases with relatively little knowledge of their local real estate markets. For instance, in some areas heavily hit by the crash, you can find buyers who don't know that a considerable amount of the local sales activity has been driven by individual speculators and institutional buyers who are attempting to rent out the homes they purchase. They might be on a block where a double-digit percentage of the houses are rentals and not even know it or recognize how this could affect them. 2. Many people don't actually run the numbers for themselves so they can't intelligently weigh the cost of renting versus the total cost of home ownership and the potential gain or loss if/when the house is sold, an event that could be a decade or more away. At best, they do back of the envelope math and where assumptions are required, use a single set of assumptions that is favorable to the decision they have already made. 3. Many people who buy a house are really buying an interest rate and mortgage payment. The recent rise in interest rates has actually provided a good opportunity to observe this: some buyers who are in the market today are willing and eager to purchase a good deal "less house" than they could have purchased even a year ago because they're simply targeting a mortgage payment. Many conversations with realtors are eerily similar to conversations with auto salesmen: the best auto salesmen focus on the monthly payment, not the price of the car and what you're getting for it, because they know that the average person will apply a completely different, and less rigorous, analysis to the purchase when it's done this way. 4. Owning the dwelling you call home is an emotional thing, so home ownership proponents often resort to weak arguments like "if you're renting you're throwing money away" to justify their decision. Of course, there's no shortage of things that people "throw money away" on and some of those people, of course, are homeowners. It's not hard, for instance, to find homeowners with a $400/month auto lease or a 48 or 60 month loan on a car that costs half of what they gross in a year. And plenty of new homeowners spend more on unnecessary upgrades and "stuff" (i.e. large televisions, expensive audio systems, etc.) shortly after they move in to their new houses. Yet many of these same people don't see the irony in bragging about how financially astute they were to purchase a home and start building "equity".