Renting versus buying a house

I would love to buy a house with my fiance, but right now we have such a great apartment at such a great deal, its hard to think about moving. We'll find out whether she will get an REI fellowship in a year or so, and then she'll finish her residency about a year after that. Those dates give us a decent timeline to do some planning on buying a house.

Where we live, the real estate market is way overpriced, in my humble opinion. Including tax incentives, we'd be spending several hundred dollars more per month for a lower standard of living: smaller space, fewer parking spots, worse location.

I've suggested that we continue to rent for the foreseeable future, maybe another two years, and save as much as we can during that time, so that when we are ready to buy a house, and need to buy a house, we'll be in a good position to do so. Who knows what the future will bring?