The societal push for homeownership is a fallacy that traps capital in one illiquid asset, burdened by taxes and maintenance. Many would be wealthier investing in a diversified portfolio like the S&P 500, while the policy of inflating home values makes housing unaffordable for the next generation.

A fundamental economic tension exists with housing. For it to be an effective inflation hedge, its value must rise, making it unaffordable. For it to be affordable, its value must decouple from inflation, making it a poor financial asset. Society cannot simultaneously optimize for both outcomes.

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.

Mircea Eliade contrasts the traditional view of a house as a sacred microcosm of the universe with the modern, functionalist view of a "machine to live in." This shift contributes to a sense of rootlessness, as our most personal spaces become devoid of deeper meaning.

It's nearly impossible to be objective about a living space you inhabit daily. To make effective long-term plans, homeowners need an external perspective—like a financial advisor for finances—to identify limitations, challenge assumptions, and see new possibilities for their environment.

Housing unaffordability is being accelerated by the "financialization" of homes. Large institutions and private equity firms are buying up residential properties with the explicit strategy of creating a permanent class of renters. This shifts housing from a personal asset into a financial instrument, profiting from the decline of individual homeownership.

Most consumer fintech products—payments, personal loans, investing—are merely means to an end. The ultimate goal for most consumers is achieving generational wealth, which is fundamentally tied to homeownership. This reframes the entire fintech ecosystem as a funnel leading to the housing market.

Homeowners and local governments block new development, creating artificial scarcity that drives up prices, similar to how luxury brands like LVMH restrict supply to increase value. This "LVMH-ing" of housing makes it unaffordable for younger generations and limits economic mobility.

The current housing market is not a cyclical bubble that will pop, but a structural crisis. It's a permanent collapse of opportunity driven by policy failures, corporate consolidation, and demographic incentives that have created deep, lasting scarcity, fundamentally changing the nature of homeownership in America.