I never find this answer convincing. Firstly, most renters are unlikely to invest the difference - we are a nation of spenders. Secondly, that rent will creep up, whereas my mortgage payment stays the same - eventually that difference will disappear, or even open up in the other direction. Thirdly, I'll have paid off my mortgage in another 12 years or so, at which point I can invest my entire payment every month whilst rent still needs to be paid. Over the time period I intend to stay in my house, I am confident I'll make out like a bandit compared to if I'd rented it.