Depends on your situation. Personally, I would buy. Interest rates are at all time lows. The housing crisis has some markets priced over 50% lower than 4 years ago. What goes up must come down, but what goes down will go up.
So you buy a house worth $200,000 that will eventually be worth at least $350K to be conservative and lock it with an all time low interest rate for 30 years. Now you are gaining wealth at the best time to buy in real estate in years.
Or you pay rent of $2500 per month, or $30K per year to the investor that was smart enough to buy the same house as a rental property.
He makes $500-$600 per month cash flow off of the "guy who rented" and has someone else paying $30K per year on his mortgage that he bought at 50% of value and with an ultra low interest rate.