Even if the market flat line like some optimist predicted, you’re still throwing your money away if you buy. You might not throw it away to the landlord, but you’ll be throwing it to the bank. Interest does not build equity, so it makes so difference. If rent is much cheaper than interest on a comparable home, even after all the tax deductions, I think it’s a no brainer. I’m going to be a first time home buy as well when the market makes more sense. In the mean time, I can rent and live very comfortable in a 1600+sq-ft townhouse for the same price as a tiny 1-2 bedroom condo.