> People rarely buy with a purely rational investment mindset; they buy based on lifestyle and emotion.

> If you bought a home equivalent to the apartment you’d rent, or a slight downgrade, you might come out ahead financially over five years.

This is really the key point. Everyone I've known personally who buys a home does so with the intent to "upgrade" their lifestyle. Even if they were perfectly content before in their 1000 sq ft 2 bedroom apartment, they aren't content purchasing the same size home. Instead they upgrade to a 1700 sq ft 3 bedroom home, or larger, because after all owning a home is supposed to feel better than just renting an apartment. In financial terms, they are worse off, but maybe they are happier with their spending (I'd hope).