If that's just the 3 or 4 percent a year, that down payment money could probably earn more in a good mutual fund. Homeowners do enjoy a federal and state tax deduction on mortgage interest payments, and there's nothing comparable for renters. With a fixed-rate mortgage, your monthly payment for principal and interest can stay the same for 30 years. If you rent, costs will steadily rise. Keep in mind, though, that part of an owner's monthly payment, perhaps one-third at the beginning, is for taxes and insurance, which probably will rise each year.
Many people view their homes as investments, and tout the wonders of leveraging.
Of course, this profit would be reduced by any selling costs such as commissions. Homeowners also face expenses for repairs and maintenance that can be sudden and unexpected. These costs are reflected in rents as well, but a landlord assumes they will average a certain amount over a long period, and charges just a little each month. For a long-term owner, this is a real benefit. But mortgage debt is paid off very slowly, because most of the monthly payment in the first 20 years of a 30-year mortgage is interest, not principal.