I have owned a home, sold that home, then rented for years, before buying another home. But I was lucky, I rented when renting was as cheap or cheaper than owning. And then 7 years ago we got into this house when prices were starting to spike, we thought maybe we should wait for the market to cool off, luckily we found the right house for us and got a great deal.
And now rents have spiked to insane rates. The $1200 to $2000 comparison isn't even accurate anymore, it's more like $1200 to $2500. My mortgage is $1200, that includes funding the escrow that pays my taxes and home owner's insurance. A home a block and half away in my same subdivision right now on a smaller and less desirable lot than mine is renting for $2800.
So if you're talking $1200 to $2000, the rental for $2000 is not likely to be anywhere near as nice as the $1200 owned home.
And getting the money together for the down payment, closing, and move in costs is just not something a lot of people can mange right now. Even going FHA you need $13,000 plus for all of the costs associated with closing on and moving into a $200K home. And $200K doesn't get you much most places now. The thing is, if your rent is $2000 a month, saving $13K is next to impossible for most folks.
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