It can be done from a net present value standpoint using the rent vs. buy calculator. It's a game of which is the lesser of two evils:
Is it worse to throw money at the banks in interest charges and maintenance cost?
or
Is it worse to throw money at the landlord?
I find that it is relatively in favour of throwing money at the landlord at this point, house prices would need to come down about 30% or rent to go up by 30% in order to make buying a house financially economic.
I think it's going to be a combination of the following two things happening and meeting somewhere in the middle (increasing rent and decreasing house costs).
Negative interprovincial migration, condo speculation, and the highest rent in the country will work at keeping rent low. Albeit, high housing costs should lead to higher rents as people arbitrage differences in the real estate market.
Until this process is complete, I see now point in buying. e.g. Housing affordability is at the worst since previous bubbles.
I think it will be some time before one can determine whether the end of this real estate cycle is going to be a soft or hard landing.
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