One aspect I've observed is that people have bought into the financialized paradigm so hard that they narrate their personal home as some kind of "investment",

One aspect I've observed is that people have bought into the financialized paradigm so hard that they narrate their personal home as some kind of "investment", instead of the reality that the building is a depreciating capital good that they're depleting. Rather than taking responsibility for renovations as things they're spending money on to make them personally happy and comfortable, they justify new kitchens/baths/etc as objective "investments" that "increase the value of their home". Since the building is still actually a depreciating capital good, and since the value is an illiquid paper figure, land prices have to go up to complete the illusion. And when they don't, homeowners throw a fit because they have already committed an outsized proportion of their wealth/income to that one asset.