"Adjusted for inflation and agent commissions, they barely broke even, and probably lost money. And, if I use the SoCal rate of inflation, then they really lost money."
Among commissions, closing costs, misc it probably cost them $100, 000 fee..so they still leave the house with extra 100K more than when they first moved in in 2004. It is not bad given what is going on in the market. In terms of adjusting for inflation that it is a money loser...ya you are right, but that statement goes true almost everywhere in the United States in a normal market conditions. Again, most of us when considering our HOME, we don't do the type rent vs buy as advocated this. We buy when we can afford it, and we rent when we don't have a choice.