One other factor you have to consider is the capital gain tax when you compare the rent vs buy comparison. Right now, it’s sitting nicely at 15%, but if Obama has his way, it might get as high as 28%. That would tip the scale a little bit more toward buying. At the end of the day, every area is different, so the rent vs buy is different. We all would have to revisit this calculation periodically to see if it’s still cheaper to rent.
