Home ownership in an expensive market like LA is predicted to be financially superior to renting over a 10-year period, assuming at least 2% annual appreciation.
"Melvin's home would have to appreciate just 2% per year to cover that $17,000 in difference that's a very reasonable bet... if you're going to hold on to this property for 10 years or so I think it's pretty safe to assume that you are going to come out ahead in terms of living expenses"