>the cost for a ~$1 million mortgage The scenario in this thread was originally "the house they live in just happened to appreciate significantly and is now wo

>the cost for a ~$1 million mortgage The scenario in this thread was originally "the house they live in just happened to appreciate significantly and is now worth over $1mm". You're describing quite a different situation. That owner by definition does not have a $1m mortgage - or if they do, they have quite literally cashed out. That owner is, in fact, saving a proportion of everyone else's general housing costs, compared to new buyers and ongoing renters. Someone with a $1m mortgage is in quite a different situation (while likely very rich in terms of net worth, does not have to be a millionaire in terms of net wealth).