The popular advice to rent and invest the difference fails because people rarely follow through, instead spending the extra money. Homeownership acts as a forced savings mechanism, with homeowners in America being worth 40 times more than renters on average.

The economic theory that rising asset values boost spending is flawed. It ignores 'mental accounting'—people treat different types of wealth differently. A rise in home value leads to almost zero increased spending, while a cash windfall from a stock sale or lottery win is spent freely. The source of wealth dictates its use.

The purchase price of a home is deceptive. When factoring in the total interest paid over a 30-year mortgage, the actual cost can be nearly double the initial price. For a $500,000 home, an additional $400,000 could be spent on interest alone, dramatically altering the long-term financial reality of ownership.

Decades of currency debasement through money printing have made asset ownership essential for wealth preservation. Since a house is the most intuitive asset for the average person, owning one transformed from a component of the American Dream into a compulsory defense against inflation.

Homeownership is the primary vehicle for intergenerational wealth creation in the United States. The average household has four times more wealth tied up in their home than in stock market investments, highlighting the severe economic impact of declining ownership rates.

High home prices should not be interpreted as a sign of a healthy market. Instead, they indicate a system that is malfunctioning as designed, where artificial scarcity created by policy and corporate buying drives prices up. This reflects a structural failure, not robust economic demand.

Whether one owns a home is a primary determinant of their perception of affordability. Homeowners with fixed mortgages feel more secure due to locked-in housing costs and accumulated equity. Renters, however, face constant rent increases and lack this wealth-building asset, making them feel far more financially insecure.

People feel wealthier with a $500k net worth that grew from $200k than with a $1M net worth that fell from $2M. The direction of change and the contrast with your past self matters more than the absolute number in determining your sense of wealth.

Schools teach us to earn a salary, not own equity. The home you live in is for making memories, not money, and is an inefficient way to build wealth. True financial independence comes from owning equity in assets that generate income and appreciate in value, a concept rarely taught.