Unaffordable Markets Make Renting Rational

Renting is the only rational choice when price-to-rent ratios exceed 30x, as seen in San Francisco (32x), London (35x), Hong Kong (48x), and Sydney (33x). In such markets, buying a median home costs over 30 times the annual rent, making it cheaper to rent than to pay a mortgage — a cost gap that outperforms #10's inflation hedge argument, which only works in appreciating markets. Until prices correct or incomes catch up, renting saves you 10-20% annually compared to buying.