> I'm really skeptical of this claim without good market data, because whenever I've looked at this for my own personal reasons the headline monthly cost of renting is 10-20% higher than mortgage payments
In sane markets, yes. However, in markets experiencing property bubbles the opposite is often true.
I recently moved to a new city where prices have doubled in the last 10 years as a result of foreign buyers sending prices skyrocketing, and we currently rent a house worth $1.8m (valuations are public here). Assuming 20% down and a 30 year mortgage at 4% interest, we'd be looking at a monthly mortgage repayment of ~$6.9k with ~$4.8k of that being interest if we were to buy the house. Instead we rent it for $3.2k a month and happily save the $1.6k we'd otherwise be paying to the bank.
Friends look at me crazy when I tell them I have no interest in buying, but until the math is flipped and I start losing money by renting I'll happily let the landlord worry about maintenance and continue to enjoy my free time.
In sane markets, yes. However, in markets experiencing property bubbles the opposite is often true.
I recently moved to a new city where prices have doubled in the last 10 years as a result of foreign buyers sending prices skyrocketing, and we currently rent a house worth $1.8m (valuations are public here). Assuming 20% down and a 30 year mortgage at 4% interest, we'd be looking at a monthly mortgage repayment of ~$6.9k with ~$4.8k of that being interest if we were to buy the house. Instead we rent it for $3.2k a month and happily save the $1.6k we'd otherwise be paying to the bank.
Friends look at me crazy when I tell them I have no interest in buying, but until the math is flipped and I start losing money by renting I'll happily let the landlord worry about maintenance and continue to enjoy my free time.