>- In a free market, rental rates are supposed to adjust to make it such that an individual is indifferent between renting and buying. I don't quite agree with

>- In a free market, rental rates are supposed to adjust to make it such that an individual is indifferent between renting and buying. I don't quite agree with that. If you're renting out, the apartment owner must pay for the risk of you destroying the apartment. If you instead buy the apartment you don't need to pay for the risk, assuming that you don't yourself destroy it.