One great thing about real estate is that most people are leveraging their down payment. I have seen increases in the past year well over 20%. If those home owners put a 3.5% under an FHA loan and got some help from the seller in closing costs (which used to be common), then they could be in less 5% on a $300,000 beginner home. That means their $15000 investment gained them close to $60,000 in equity last year. Yes they have payments, insurance and other costs, but with the low interest rates, these likely are not much above, if at all, over what rent was running. It's a long term proposition, giving there are selling costs, but its a forced saving, that, right now, is returning a huge profit.
Of course, if you are not paying rent, utilities, or any thing else, those house payments seem like a complete waste.