[beagle3]

If you're staying in the same place for ~10 years, that is right. However, if you are NOT staying long term, you pay that + a profit margin to your landlord, but avoid the (usually 6%-8% all things considered) friction that goes to real estate agents, etc.

If you live in NYC, and your studio apartment is worth $500K, that's $40K in friction costs -- rent for 16-18 months for the same unit. Ammortized over 10 years, it is not a big deal. However, if you move after 3 years, that brings your "owner equivalent rent" up by 50%.

Circumstance is everything.

In a city like NYC or SF where most people can't afford a house larger than they need at the moment, the introduction of kids forces you to move -- thus, if you're planning kids in the next few years, you're better off renting even if you know you'll stay in SF for the next 20 years.