Why do some families rent and not buy?

[Jonathan Feliciano]

For a while now, I've been hearing from multiple real-estate investors that "families make the best tenants"; they're more likely to keep the rental property in good condition and they tend to rent for a longer period of time, usually several years.

But what I don't understand is why do some families rent---and not buy---a property for themselves? I feel like it would make more financial sense to buy a property you plan to live on for several years. So, why rent?

I'm curious to hear what you guys have to say about this.

[Dennis Cosgrave]

I always rented the house I lived in, but put my money into rental properties. For example, the last house I rented had a market value of $600,000. The property taxes alone were $1,000 per month. My rent was $1,600 per month. Owning that house with a 20% down payment would have cost me more than double that. The mortgage payment alone would have been $1,900. Add in insurance and maintenance, well, you get the picture.