But the point is that renting is significantly cheaper than owning a home- so you take the difference and put it in the market every month. That's the key point- that the monies invested in the market over time will beat however much your house appreciated (minus the costs of owning a home in that timeframe, minus the costs of selling, which are usually very significant). If you're in a market where renting is more expensive than owning a home, of course it makes more sense to own.
There are calculators out there for comparing rent vs. buy options in various metro areas. That's one mistake Bruenig made, what's true for his area might not necessarily be true in a different city
People greatly mis understand this point. Renting really is cheaper in the short term than buyng, especially if you can get a multi year lease. I’ve rented many single family houses in my life, and always, without fail, the rent was less than what the current mortgage (with minimal downpayment) + upkeep. This delta also tends to grow as the value of the house goes up.
So a very valid strategy is to rent, and take that delta and put it in an index fund. This won’t outperform a mortgage in a very hot market, but you will still likely be able to live “rent free” after 30 years of this strategy with a 4% drawdown on just that account.
The main argument I like for home ownership is that it really helps force this savings, since many have a hard time not spending money on frivolous things.
That said, I finally bought the house I was renting 6 years ago. Mostly it was a hedge against raising rents. My area was seeing 10%+ yearly rent increases. So far it turned out to be a smart play, but interest rates could have gone up a couple points, and I might uave been underwater for several years.
There are calculators out there for comparing rent vs. buy options in various metro areas. That's one mistake Bruenig made, what's true for his area might not necessarily be true in a different city