First, in most good areas rents increase a bit faster than CPI inflation, most of the time. So you really need to look at your real, after tax return on your CD. Which may be close to nil.
I disagree, depends on the availability of housing, number of
rentals on the market, etc. My rental history in Raleigh, NC, a
great area and growing, same area and size:
1990 $450
2007 $550
Pretty sure that is not increasing higher than the inflation rate.
I think unless you willing to stay put
at least 5 years, a house is a bad
option. And obviously paying rent vs owning in the long run, its better
to own, but I know a lot of people who have lost money on housing,
myself included, on property they've own for less than 10 years.
Speaking of real returns, housing unlike CDs, require insurance,
property taxes, maintenance, improvements, interest payments.
And a nil return on your CD after taxes, what tax bracket are
you in?
TJ