Relatively low interest rates (locked in for 30 years), tax deductible mortgage interest (some) and prop13 make ownership still economically beneficial even if you don't assume massive appreciation. This assumes you stay at least 5 years due to large transaction costs. Obviously you have expenses associated with ownership and some opportunity costs due to not investing the down payment but from all the math I've done if you want to stay and you can swing a 1.5M house it makes sense to buy.
> Relatively low interest rates (locked in for 30 years), tax deductible mortgage interest (some) and prop13 make ownership still economically beneficial even if you don't assume massive appreciation.
Good point, it certainly depends on how you do your model. Accurately predicting the housing market appreciation and your investment rate of return is challenging. Also, renting vs. buying have different risks (monetary and otherwise).
