Another problem is that people who buy a house for $1M don't have that amount laying around in cash to choose to put it in stocks or in a property. At the end,

Another problem is that people who buy a house for $1M don't have that amount laying around in cash to choose to put it in stocks or in a property. At the end, they will be making more money because their compound interest will be on the entire price of the house $1M vs the S&P compound interest on the amount they have in cash (a fraction of the $1M).