I recently came across some great material at Kahn Academy on this topic. We talk a lot in FPU classes about renting vs buying and when is a good time to buy a house. I advise participants be on Baby Step 3b before buying a house. Baby Step 3 is Debt Free with a 3-6 month emergency fund in place. Baby Step 3b adds a 20% down-payment that you use towards a 15 Year fixed rate loan that is no more than 25% of your take home pay. An additional consideration when house planning is to have margin if you have an interruption in employment. Ask questions like: Do both spouses want to / need to work full time to fund this house purchase? Could we make it financially on one income if we chose to or had to? Elizabeth Warren has a good book out on this topic called the Two Income Trap. Renting makes perfect sense depending on your stage of life, roots to the community etc. If you move a lot for work renting is generally the better option. To help unpack this check out the 3 part video series on rent vs buy at Kahn Academy. I've attached the spreadsheet below from lesson 3. Renting vs Buying Lesson link
Dave Smith is part of the KCC finance staff and a Dave Ramsey Certified Coach.