That Microsoft Excel “rent vs. buy” template is great. It really shows you just how screwed up things are right now. Make sure to experiment with negative annual appreciation numbers to really get a feel for how much more expensive buying is, even if houses are “only” going down 1-2% a year. Also, if you work from home (and for yourself) don’t forget that you can write off a portion of your rent for your office. This can make up some of the difference you lose by not being able to detuct mortgage interest and property taxes.