USA Today looks at the rent versus buy decision. "In some of the nation's priciest real estate markets, the financial reasons for renting instead of buying are the strongest they've been in 25 years. So how out of whack is it now? The national median mortgage payment is $1,687 a month, nearly twice the median rent payment of $868 a month. The financial gap is even larger in cities where home prices recently rose to sky-scraping heights, such as New York, San Francisco, Los Angeles and Washington."

"Micki Seibel and Jan Leger told their friends they were going to sell their home in the heart of San Francisco and rent an apartment. Though Seibel and Leger love their home, which they bought in 2002 for about $1 million, it's been draining them of $5,600 a month for their mortgage and taxes, when they could be renting a place just as nice in the same neighborhood for about $3,400."

"'We can put that savings in the bank and make it work for us and take away the risk of the unknown future of the real estate market,' Seibel notes. 'For what we're paying for our mortgage and property taxes, we could be renting a mansion in Pacific Heights,' he said."

"Add rising interest rates, and it's easy to see why many would-be home buyers are sitting on the sidelines and why even some homeowners are cashing out. By renting, they gain the flexibility of a lease and freedom from home repairs. They can also invest more money in other assets that could appreciate faster than real estate over the next couple of years."

"'For someone debating whether to rent or buy in a market that's experienced recent and substantial house-price run-up, it may be better to delay the home purchase and see what the market looks like a year or two down the road,' says Stuart Gabriel, at the University of Southern California."

"A homeowner in Orange County, Calif., for example, would have to stay in his or her home for a decade before breaking even on out-of-pocket costs compared with renting, according to Marcus & Millichap."

"'Real estate is probably the best investment any young person can make,' says Yadiris Ferreira, who bought a condo last month in Pembroke Pines, Fla. Still, her mortgage, including homeowner association fees, totals $1,800 a month, more than half the money she takes home as a high school math teacher. 'It's crazy,' Ferreira concedes. But, she explains, 'If I didn't buy something soon, it was going to get to the point that I couldn't afford anything.'"

"Lots of other people thought the same way during the boom years. But now home sales are falling, and in some cities, prices have started dropping, too. In June, condo prices fell 2% nationwide, and single-family home prices dipped in several markets, including San Diego, Boston and Washington."

The Times Standard in California. "According to the Humboldt Association of Realtors' latest affordability index, home prices dropped in every community except McKinleyville. In May the median home price in Humboldt County was $319,500, with around 11 percent of Humboldt County residents able to afford a home. June's median price was $307,500, representing a one-month price drop of $12,000."

"Local economist Erick Eschker said that he still expects a 'large downturn in local real estate' in terms of prices and number of homes sold. One indicator he looks heavily to is the housing price-to-rent ratios. Currently, rent prices in the county aren't capable of covering property owner mortgages, he said, and owners are banking on the ability to make up for the loss in appreciation."

"Eschker expects that appreciation to come a lot slower or even fall off in coming months, which would even out the rent-to-purchase ratio. 'Landlords are doing renters a favor right now in comparison to the cost of buying a home,' he said."