I agree with the last bit about big purchases, but surely it's not an absolute rule that applies to housing unquestioned. You will always have the cost of housing whether you rent or buy. There are more risks with buying, but if you are in a market where you pay a premium for renting, is there a point where that no longer makes financial sense? I think the real epidemic was that Americans were acquiring too much house, disguising the extravagance as an "investment." You can also rent too much house.