You can be invested in your home in more than just a financial sense. If you don't own it, you have no incentive (or even much ability) to improve it. The owner

You can be invested in your home in more than just a financial sense. If you don't own it, you have no incentive (or even much ability) to improve it. The owner who doesn't live in it is also incentivized to do the bare minimum to keep it rentable. If you you're going to live somewhere long term, it's nice to own your surroundings so that you can improve them for yourself, and to have neighbors that are similarly motivated and incentivized. Society works better when everyone's self-interests are aligned.