Though it's always preferable to buy a house and not have to pay rent each month, for some people renting can be a lot cheaper than buying a house. The extra money buying a house would have cost them they invest. Should they eventually decide to buy a home their investments would probably earned them enough money to buy a house upfront without taking a loan. I believe this can work if one lives in a very cheap apartment . . . Don't know if it can work for everyone.