There are some additional and significant details that complicates this kind of analysis:
In some places, renters have something more accurately describable as quasi- or partial ownership.
In a lot (?) of places, owners also have to pay property taxes, which can change (e.g. increase) significantly over short periods.
In the U.S. (and I’d guess some other places), owners are subsidized, e.g. via the mortgage interest deduction.
It also the case that, (again!) in some places, it’s considerably cheaper to rent than own – these seem to be places where housing generally (and relatively) expensive but renters also have something like quasi- or partial ownership of the housing they’re renting.
In my experience, most housing rentals involve a significant time commitment, i.e. a twelve (12) month lease. That’s a very different situation than month-to-month or one in which a tenant could leave with a month or two notice. And moving itself is very costly – not just in financial terms, but in time, energy, and considerable stress. Transaction costs are important!
There are some additional and significant details that complicates this kind of analysis:
In some places, renters have something more accurately describable as quasi- or partial ownership.
In a lot (?) of places, owners also have to pay property taxes, which can change (e.g. increase) significantly over short periods.
In the U.S. (and I’d guess some other places), owners are subsidized, e.g. via the mortgage interest deduction.
It also the case that, (again!) in some places, it’s considerably cheaper to rent than own – these seem to be places where housing generally (and relatively) expensive but renters also have something like quasi- or partial ownership of the housing they’re renting.
In my experience, most housing rentals involve a significant time commitment, i.e. a twelve (12) month lease. That’s a very different situation than month-to-month or one in which a tenant could leave with a month or two notice. And moving itself is very costly – not just in financial terms, but in time, energy, and considerable stress. Transaction costs are important!