On: How to earn your macroeconomics and finance white ...

[jdblair]

I'm not forgetting. I have to live somewhere. If I pay rent somewhere else I'm paying market rent. That is the gp's point.

[liamcardenas → jdblair]

Yes, but if you live in your own home, you are still paying market rent by means of opportunity cost.

You are renting to yourself-- at the market rate.

[jdblair → liamcardenas]

I still don't follow. As market rent goes up you will be renting to yourself below market rate. Suppose market rent is $2000/month and my mortgage is $2000/month. In 10 years market rate rent has gone up, but my mortgage is still $2000/month.