Rents are going up. Demand for housing has trickled down to demand for condos, and that's finally increasing demand for apartments. I imagine supply is going down too, as apartments are being converted over. By the time our lease is up, we'll probably be looking at $850+ a month for a one bedroom apartment behind a bar where men expose themselves to my wife.
Condos, meanwhile, are selling in the area for about $200,000, which with enough creative financing could end up being around the same price. Provided condo prices don't go down, a condo purchase is a no-lose situation, since at worst you could sell it and pay off the loan. (You might even make money!)
The key question is where are prices headed? If they're going to stabilize, we're okay. If they head down, not so much. It would be nice to have a place of our where we had a little more room and could have a dog, maybe even a little garden. I'd rather have a house, but that's not going to happen anytime soon, if ever. Prices are too expensive. But we can find some nice places for $200,000, or even lower if you're willing to move a little further out.