The Buy vs. Rent Conundrum

Updated from June 21

Housing options essentially boil down to buying or renting, and these days that feels like a choice between boarding the Titanic or settling onto the Hindenburg.

For buyers, the days of easy money are drawing to a close now that Ben Bernanke and Co. at the Federal Reserve have passed 17 straight quarter-point rate hikes, bringing mortgage rates higher in tandem. Meanwhile, the rising rate environment makes "exotic" adjustable-rate, no-money-down options look downright foolish. Moreover, real estate brokers nationwide report that sellers are not yet willing to bring down home prices.

Renters lulled into complacency by years of stagnant or sinking rental rates also are in for a rude awakening. Apartment rents are expected to increase nationwide by an average of 5.3% this year, and even more so in high-density metropolitan areas, according to the National Association of Realtors. That's about double last year's average increase and the highest leap since 2000. ...