Oh ABSOLUTELY! Someone who is only going to live in the area a short time - doctor doing a residency, or contractor on a short-term job perhaps. If they're not gonna stick around, why buy?
You gotta do the numbers to see what makes the most sense.
ALSO, in my area, SO MANY PEOPLE fall in love with our Spring and Fall weather, only to find that Summer can be brutal. I used to tell folks to rent for 6 months to a year before deciding.
And they would not listen, another agent happily sells them a house and then they come back in Fall or Spring LOATHE to spend another Summer here. With NO equity.
AND, if you're not fiscally responsible enough to care and feed a residence, you'll find out quickly that property requires maintenance and you're buying!
MANY people should be renters. That's why we have landlords! 

Long term renting makes great sense for myself. It's more of a "time value of money" equation and a "leveraged lifestyle" (doesn't mean we cannot afford it, but we absolutely get more for our dollar) among other things. It may not make sense (I don't consider our home as an investment, but as a lifestyle expense) to many, but it works. BTW, I am an investor and do understand the benefits of home ownership (especially leveraged gains), I would agree that home ownership would benefit the great majority of everyone else.

The detailed "why" and "how" would take a book!

Of course, renting can make sense... if you're not planning to be in a specific location for long, if you have low rental costs that are fixed for a long period of time and lower than a mortgage, if you don't have the credit to borrow, if you're not sure about your work stability, if you're not sure about where you really want to settle down, if you really don't want to undertake home maintenance.

Home owner ship is not for everyone.  It is a long term financial committment that does beyond the initial purchase.  How can you tell?  

do the research, find an expert to give advice, run the numbers.  get educated.  

Absolutely Joann Schermerhorn . Even though I've never rented I have friends who don't want to take care of a yard or maintain a house and asking them to purchase one would be like imprisoning them. On the other hand we have all seen homes, and sometimes entire neighborhoods, where there is no "pride of ownership" so it looks like crap. Owning is certainly NOT for everyone.

Renting versus owning/buying makes sense for many reasons. One size does not fit everyone or every situation. 

Peter Mohylsky and I were discussing this recently. I echo his comment. 

The feeling of owning is up there with feelings to experience. For function, renting works. For long term investment buying works well. People who have careers in one place tend to buy and those that may move around put it off. If one buys, hold for at least 5 years to recapture costs of owning or keep and rent out? In the end the whole concept remains subjective. Have fun with your Real Estate experiences. It all stays here in the end...

Owning is better unless you don't have the capital to buy, you are looking to live someplace for the short term or you can't qualify for a loan.

WAY too many variables to consider before answering your question

I'm late to the party and you have several great responses here, Joann. Good luck with whatever you decide!

It all depends on your situation I think.

JoAnn,

I think that Candice A. Donofrio gave you a fabulous response.  There are no absolutes in the universe, except doing what is absolutely right for you...A

sure, job instability is one. Not a good idea to buy a home & then have your company move out of town. 

Maybe you are blending households & are not sure where to go at the moment.

It will always end up (in my area) cheaper to buy than rent. I have at least 5 apps on my phone that can figure that out for me ... get one.

First do you qualify for a mortgage, second do you want to build equity for yoursel for landlord?

If you are going to be in the same area for several years, home ownership is the easy way to build family wealth.

I would rent if I were only going to be at a location for a short time, or when I am determining whether or not that location is right for me.

if you can qualify for a purchase, renting makes no sense.... you gain NOTHING.

Depends of your financial situation.

One siuze does not fit all.

How long are you planning to stay?

If you're not planning on being there a while.

Nina Hollander summed it up well!

Yes. It's case by case. If you know you're getting tranferred from place to place every year for job, military, etc, renting probably makes more sense.

Home ownership is so individual. Some people are not meant to purchase a home, especially if they like to move around the country - a lot! My parents were those people. They bought a home back in the late 70s and turned around and sold it a year later and a half later because he was being transferred. Also, a homeowner becomes their own landlord (per se), the maintenance and upkeep should take priority with money set aside, otherwise a solid investment can go south quickly when problems are ignored. Owning a home has so many fantastic advantages for those who can afford it, for those unable - best to rent!

Are you a maintainer?
Do you stay in one place for a long time?
Do you build relationship with neighbors instead of antagonize them?

If you said 'yes' to all three, then get your finances in order and buy.

Renters are either people who are trying to clear up credit history or are only in an area for a short time - job uncertainties, empty nesters in between homes, newlyweds.

Yes, but as you said every personal situation is different. If one is financially ready to commit to becoming a homeowner, why to keep renting? 

It depends on your personal interests and financials, the time you plan to be in the area, and your needs now and in the future. There are some good responses here with more to think about.

The individuals short term vs. long term goals/plans effect it, their finances and the market affect it too.

Some people do not like to have the responsibilities associated with home ownership.

How long do you believe you will be living somewhere is huge . Less than 3 years at location is almost impossible to recoup your initial outlay .

The obvious is, Are you there for the long term or the short term?

Can you qualify for a mortgage?

Do you want to be a maintainer?

Yes, buying can be far more expensive than renting in some situations. You need to consider your age, financial resources, flexibility of moving options, how long you plan to be in area, etc. Hard numbers can help, do some calculations - take into account deposit, (opportunity loss if you invested same funds), mortgage costs, attorneys, inspections and so on vs straight rental payments. 

In our area rent is way cheaper than owning. An AAPL developer told me and gave me a copy of spread sheet how much money he saved over last 20 years renting. 

I have spoken to some people that may get relocated within a year.  That wouldn't make sense.

I rented until I could buy. That was the plan and I never wavered from it!

For my clients, they need to make a commitment to the area to buy. Short-term or no real plan is risky if you buy.

Your lifestyle plays a big part in your choice to rent or buy. If you get bored easily, or move alot buying probably isn's the best option for you.

Yeah, right, how ?

We deal with several service people who are deployed and are not sure how long they will be in our state. There is no return on investment...

Renting makes sense if you are temporarily assigned somewhere due to work.  Then again, if it is a growing area, it might make sense to buy then rent it out for a few years after you leave, perhaps to some co-workers...

Buying is a great investment where renting you are not getting any tax benefits.

yes, definitely. 

Especially young, broke post-grad students who are non-commital to a certain city/neighborhood. Quite like myself :D