sduuuude
Some may be stuck with the decision to rent for 40 years for all kinds of reasons, too many to elaborate here. And yes you could be stuck with a bad credit rating if you buy beyond your means and/or bad fortune strikes(job loss, health issue etc.). You might get struck by lightning too. The best one can do is minimize the risk in life decisions and try your best to meet your goals and survive.
I was not trying to justify buying at the current prices in San Diego. They will come back to earth and offer better opportunities in the future. It is obvious that if a persons individual circumstances change (job loss, health issues, family crises etc.) and one must relocate or cannot afford to keep the home purchased, and if the home is not worth more than mortgages plus closing costs then your observation is correct. It is impossible to provide a rent vs. buy argument for all humans all the time in all markets because of uniqueness of each human experience.
As you state if you rent and prices come down in 5 years then you buy. What if prices go down even more after you buy? No one knows where the bottom is.
The point I was trying to make is at some point in ones life if you have the opportunity to buy and can hang on through the ups and downs of life, in the long run having a residence paid off is better than renting when you are living on limited income.
