A home should not be considered as much of an investment as it commonly is. A home is a physical good you buy because you need a place to live, and generally th

A home should not be considered as much of an investment as it commonly is. A home is a physical good you buy because you need a place to live, and generally the economics work out so that it's long term cheaper to buy a place than to rent it. Ideally home prices should be low for the reason you want any other physical good to have low prices: so you can spend your money on other things. But, a home is generally the most expensive thing people own. For a lot of people (most?), it probably makes up the majority of their net worth. So in general the incentives are for policy to be passed to pump up home values because people want to make money without having to work. Basically, we have perverse incentives regarding housing prices due to the fact that they are expensive things.