Historical return on stocks is between 8-10% but 4-5% on real estate. Since returns are so much higher on stocks, it is better than a primary residence even after you consider tax.  If you have done analysis at any point over the past 3-5 years, renting has been coming out as the clear winner.  However, with rent going up 3-5% a year and real estate prices dropping 20% (GTA) the past few months, the gap is now closer but still favoring renting.  The equilibrium may come in the near future if prices continue to plummet but a new analysis will have to be done at that point as borrowing costs have also increased.