Fixed rate mortgage payments are constant, but rents rise with inflation. If people expect high inflation, that may explain why rents look cheap compared to current mortgage payments on comparable residences.
This is true--we've owned our house since 2009, so our mortgage is about half of what it would cost to rent around here now.
But in the short term, there really shouldn't be such a big gap between renting and owning. That means that there isn't a global shortage of housing in the market, but distortions in the market because of external factors. Clearly, right now, a renter is better off waiting and putting the difference in the bank.
If there is high inflation, the Fed will raise interest rates, crashing the housing market. Not saying you're wrong, but there are many factors to be considered.
But in the short term, there really shouldn't be such a big gap between renting and owning. That means that there isn't a global shortage of housing in the market, but distortions in the market because of external factors. Clearly, right now, a renter is better off waiting and putting the difference in the bank.