Many argue renting is so much smarter than buying because it’s cheaper monthly, in areas, not all, and you can use your capital for better investments that may/mostly deliver better value growth than housing. Many don't have the discipline to do so and owning a home is forced savings versus squandering any surplus on day to day living rather than investing.
But, before you conclude anything, please consider the following additional questions and answers:
1. Q: Can you buy $500k worth of Google, Apple, Microsoft, Coca Cola and Verizon stock with 20% down and finance the rest? A: No.
2. Q: Can you pay a much lower tax rate on your stock capital gains? A: Yes, but, there is no long term tax gains exemption on stocks of $250k for singles or $500k for couples that apply to homes, those are tax-free gains.
3. Q: Do fixed rate mortgage monthly payments rise over time? A: No.
4. Q: Can stocks go down sharply in value and can some become valueless? A:Yes. Most don’t, but some can. A fully insured house may devalue too but disappear and become valueless? No.
5. Q: Can you live in your stock portfolio? A: No. You can stare at it, but you need to live somewhere, catering to an essential need while doing so.
6. Q: Can you lower an interest rate on a mortgage if rates drop notably? A: Yes.
7. Q: Can you avoid monthly payments to live somewhere? A: No. Maybe with parents or on the couch of a friend, but you must live somewhere. Either paying rent or a mortgage payment. Rent payments do not build equity over time.
Is Warren Buffet's quote slightly less of a 'good deal' today than when he said it years ago? Yes, but it's still at least 90% as true, impactful and meaningful.
So now I will leave it to you to answer the next question about that 10 year old quote: Is a 30 year mortgage still a good deal? I know my answer!