Also, renting in my opinion is cheaper.

Absolutely not always true.

My wife and I rented for years before purchasing our home. We stayed in a single apartment for four years (and another for years before that) and the cost of rent increased year over year by about 100$. At the end of the fourth year, the apartment complex had come under new management, and they were going to increase my rent by about ~150$ to around 900 a month. They had not done any upgrades to the apartment in the four years we lived there, were not willing to move us to a unit that had been upgraded, and this was with the full understanding that we had been great tenants who had never missed a rent payment once, and had no sort of complaints against us of any kind.

I was literally in the process of looking at another apartment to rent when I was directed to a rent to own home by a real estate agent - and discovered that for the size of the units I was looking for (2b2ba+) it would be cheaper in my housing market to own, assuming my credit was decent.

I thought my credit wasn't that great.

Fortunately, I was wrong.

I now own a 3b1.5ba house for 150~ less a month than I would have been renting the previous unit for, and the cost of that unit has only gone up in the years since we purchased our home (we'll have been there three years in august). That includes taxes, insurance, and PMI on a 30 year FHA loan. I have nearly ten grand in equity on top of the down payment my wife and I scraped together - an asset I absolutely would not have had we been renting. My credit score is higher now than it was then, I get my kid in a much better school than we were otherwise zoned for and when my wife finally graduates with her master's degree in the next year or two we'll likely pay off the full balance of the note on our home inside of two years, and be living mortgage free and looking to buy the dream house.

ALL of that started with purchasing a house.

Why? Because people are more likely to rent smaller apartments than what they would've gone for if they were buying the place. That again, is the psychological effect of seeing housing a long term investment and also the emotional aspect of thinking a home is special and since I'm buying it once, I should get a good one.

Except in cases where families need a certain amount of space. Two adults and two children can't live in a studio apartment, can they?

Moreover, the existence of a bubble proves that the price of homes had exceeded its value (which is rent) and continues to do so due to all the speculation going around in the housing market.

Several fallacies here. First, who's to say that rental units don't experience bubbles? Going back to the original statements I made, I was told by several leasing agents that the reason a well qualified tenant (me) couldn't get a reasonable rate in my area is because the number of prospective tenants far exceeded the number of desirable units - producing a bubble of increased rental costs versus actual worth.

Lets not forget, that renting also allows you the option to change homes readily when a cheaper one is available. If you owned a house you probably wouldn't be selling it for a mere hundred dollars a month, even though over time that might be a large sum but selling a house is a rough ordeal and finding buyers who are willing to pay the asking price is hard. Overall, it isn't easy changing homes you own as it is when you are renting.

This is the one argument you have in favor of your stance, but some people don't NEED to move. If you have a good to great job and kids, it's unlikely you'll be haring off to another state. A house is only one thing that ties you to an area; family, financial, emotional and other ties keep you in a particular area as well.