Where I live, it's a buyer's market. We have plenty of choice. I can live with not making money on my investment, or even losing a bit, as long as it means losing less than I'd have lost renting.

EDIT: Wow. I have just used the NYT's calculator with numbers to the best of my knowledge (assuming 0% house price growth). Per them, I should rent. I'm paying $840 in mortgage plus about $180-200 in utilities etc. Their estimate is that I should rent if I can rent a house for less than $1800 a month. That's definitely possible here. Way to make me rethink my investment!

If I assume a 3% growth in house prices, I should definitely buy, by a 300$ margin.