While buying housing solely as an investment may not make financial sense in most markets over the long term, buying for housing security is a good enough reason to buy.   Rental stock disappears or increases at rates that outstrip income.  Renting is unsettling, undependable and without financial return.  It makes sense if you need to move often, are not sure where you are going to settle for at least 5-10 years, when you are starting out as a single person, and possibly in the last 10 years of independent living, otherwise, ownership is often the better choice so long as there is a price range of housing available to buy.  The problem with our housing stock is that it has been turned into an investment vehicle and is being bid up to exclude homeowners.  This is apparent in Metro Vancouver where supply has increased faster than population over last 10 years but there is lack of supply for homeowners vs investor class.