Buy or rent in East Bay, Austin or similar places

Bay Area
10

Renting is cheaper in the short run if appreciation is 0. That explains 90% of USA.

But over longer time horizon, buying is better because

  1. the first letter of PITA is P, the principal. Only interests is expense. Principal money you are paying yourself. As time goes on it will be bigger and bigger part of PITA.

  2. After 30 years you pay off the whole house. Big drop in payment. Rent will never stop.