Hit $500k NW today. Getting married next year and planning to have kids in next 2-3 years. Currently in SF Bay Area. When does it make sense to buy a home vs continue renting?

Wife and I are both 30 and in our green card process which can take another 2 years

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In the Bay Area, renting will almost always make more sense

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Agree with SPM1- it's the same in SoCal. I ran the numbers, and the cost to buy something comparable to what we rent would nearly double our monthly out of pocket. Better to invest that difference and save for later. Plus we don't have to deal with any of the risks/major costs (like the new roof our house needs soon). Maybe we will buy in the future, but at the moment the financials just don't make any sense!

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It will make sense to buy as soon as you leave the Bay Area

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Buying has been very NE accretive for people that historically bought in the Bay Area so would not dismiss as others are. But when to do so is personal and varies based on many factors - need to figure out schools, where you want to live….

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Congratulations! That's huge. I'm personally not planning on buying a home at any point. It's just not a dream of mine. But if you really do want to be a homeowner and don't plan on moving, you can always start looking now for something within your parameters. As long as you have the down payment and don't mind pulling from your investments or savings for a while.

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I'm at ~$700k NW similar age and don't feel ready to buy whatsoever. Almost all my peers who have are either much higher NW or have parents contributing

IMO, SF's combination of extremely high home prices plus rent control means buying is very rarely the economically rational choice, unless you (A) have a high degree of confidence on your future needs (consider what raising kids will look like for you, and if there's any risk on changing job location), (B) can actually afford to buy a place that meets your needs (might be multiple times the cost), and (C) have a compelling reason why you can't meet your needs renting with rent control

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It never makes sense if you want to FIRE. Houses are just for flexing and owning for the sake of owning. You’re going to pay MORE to own a house in the long run, which is the opposite of what FIRE is about

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IBA1 You mean building equity in a home that appreciates slower than the stock market?

All while draining property taxes, mortgage interest (big factor), repairs, and sometimes HOA that don’t get recouped?

https://www.instagram.com/reel/C8euZwYMoHk

You should consider setting roots in a different state if you can.

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Generally if your cap rate is 3% or less, then it’s better to rent the property.

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