the market will still burst if renting demand is only in low-medium cost/high density areas.

many factors will lead to market downturn. while decreasing property demand is one of the factor, it doesn't have to be initiated by it.

your argument is way too broad.

renting gives you the option to wait and buy when affordability fits in your budget, i.e. saving your bullets. of course it depends on how much you are renting, and how discipline are you in saving. With more disposable income, the individual will be able to grab opportunities in other financial markets like stocks, commodities, etc. I refuse to buy my first house yet, can't commit much of my income when there's so much opportunities in stocks, and IPO market.

It's all about the game of patience.

This post has been edited by kwh1989: Aug 3 2013, 06:46 PM