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I am not sure why you think it should be any way else with our current systems, though. Asking less means the home owner is effectively paying for maintenance and upkeep entirely out of pocket, and entirely net loss for them. That said, I also don't think that means they need to price gouge and trying to make huge profits.
It’s not a net loss. Renter’s pay can be used for maintenance or equity or anything else. Since houses don’t depreciate in this market and maintenance costs are not even close to rent, the landlord only gains.
I understand, but the comment I replied to was implying that rent should somehow be less than mortgage plus insurance. My point is that under those circumstances, it doesn't make sense.
An equitable method would beto splitthe cost of mortgage and insurance between the property owner and the renter. 60/40, 50/50 etc. Having the renter foot the entire bill with no benefit other than occupancy is just not a fair deal imho.
You can only live in one location at any given time, so the fact someone is willing to pay money to use an otherwise unused, extraneous space/house is indeed a profit by any measure.