[duped]

I think you're making broad statements about macroeconomics without thinking too hard about it.

If you're spending $X in rent and have $Y in cash, whether or not it's better for you personally to put that money into equities, treasuries, or real estate depends almost entirely on the current interest rate.

So while to me personally, it makes more financial sense to rent the property, the same could not be said of anyone that would purchase or rent the property today.

The market rates for housing, either for sales or rent, is pretty much the same when looked at as a monthly payment. The only question is whether or not one has $Y in cash for a downpayment and if they will come out on top if they use that money for a mortgage instead of putting it into the stock market. Owning your home is not always better than renting, it depends entirely on your situation and the current market.