Most people are bad at saving and investing, so housing acts like a forced savings account. People won't be investing the difference between rent and their mor

Most people are bad at saving and investing, so housing acts like a forced savings account. People won't be investing the difference between rent and their mortgage, they'll be using it for other expenses. Especially for anyone that's at the median or below, you're not making enough to actually save much, so the mechanism here is effective. The most important thing is that a mortgaged house is a hedge against rent inflation, as it locks in a flat housing payment for the next 30 years. Then when you're paid off and you retire , you only have to worry about maintenance + property tax, which is cheaper than the mortgage ever was.