But this is literally the point of what @intercst is saying! If that $500,000 house rents for $5,000 then you can go either way - rent or buy and it’s more or less equal. But when things go out of whack, for example the aforementioned $6M house in Beverly Hills that rents for $6k (according to zillow), then it is clearly worth renting rather than buying. And when it goes out of whack in the other direction, like after the GFC when condos that rent for $1200 were selling for $75k, it is clearly worth buying rather than renting.
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