<prompt> Human: Why do people rent such expensive properties? In my city new york city people rent at 3,000 , 4,000 , 5,000 , and more. Obviously these people could afford to buy a place if they can pay such high rental prices. So why do they do it?Ive always had the idea that my next step in life would be for me to move out and rent a nice studio or 1bd in a great busy downtown type of place. Perfect for a mid-to-late 20s guy such as myself. I liked the idea of being able to afford a nice place without having to sink majority of my cash into a property by purchasing which would require having to put much of my cash into a down payment, or even purchase cash.Originally my plan was to rent until I was eventually ready to buy something nice.However, recently it hit me that paying rent would basically be throwing away money...which really does not sit well with me, im pretty frugal.I am now thinking in terms of percentages and investment. If I purchase I will not lose money at any time, and will always gain on my investment, while being able to use that investment and not have a bunch of cash sitting around that would depreciate with time due to inflation.My question is, why are people who can obviously afford a lot and are well off financially, willing to pay such high rent prices? Why do they not have this same approach?  <response>: My question is, why are people who can obviously afford a lot and are well off financially, willing to pay such high rent prices? Why do they not have this same approach?Because they dont make as many patently false assumptions as you. As others have explained, renting in HCOL areas almost always makes more sense for a 20 something who will likely move for work at least one more time before settling. 