I agree, rent will go up and up. But tax write offs will go down and down. So that will add complexity to the comparison. Then you should then consider, if you’re a very good tenant, paying early every month, do your own minor repairs instead of bugging the landlord, keeping the place looking good, they might not raise the rent for many years. These are some variables that can affect some of the assumptions about the future of rent and cost of buying. Who knows, maybe we can go in a great depression and rent will drop or real estate price can copy Japan’s movement and drop for 18 years straight. It’s hard enough to estimate what will happen in the next year or 2, much less 10 years down the road.
