Just a slightly different spin on what's been said…
Rent vs Buy is a complicated decision and no simple monthly payment analysis is sufficient. So, while I'd generally agree this isn't a terribly good time to buy, when I return to SD next year we might just buy another house (we're renting one out right now). Why?
There are some subtle advantages to buying as well if you expect to stay for some time. One, the mortgage will generally stay the same (save the small property tax increases). While THIS year might be cheaper to rent, if you are going to remain in the house then you should generally expect to pay less than renting eventually.
Two, renting is a yearly gamble. If I don't decide to buy again, then the poor family that's renting from me now is not going to get his lease renewed. Bummer if he's got kids in school, a job, doesn't feel like packing up all his stuff, etc.
Three… if you don't keep treating your home like an ATM, eventually it'll be paid off. Mine will be paid off in 2018; that sure makes retirement that much easier to program. So, while the renter is paying higher and higher rents, I'm down to property tax (and at 1998 appraisal).
Finally, renting is never your house. Granted, I wouldn't pay 5k/mo to buy a house I could rent for 1k, but there is certainly some value to being home at night. Paint it, improve it, get to know your neighbors… I could live in an apartment if I just wanted to keep the family out of the elements; let's not completely discount the advantages of owning ones own home.
