First, buying a home also gives you a place to live that you can call you own. People will happily pay a premium for that feature.
Second, personal finance is not a mathematical optimization problem. You need to consider the effects that certain financial moves have on (fallible) human decision making.
You are more likely to pay their mortgage _every_ month than you are to contribute to a different investment. A home is also more illiquid than an investment account so it is harder to cash out for toys/vacations. Sure, foreclosures and home equity loans happen, but, for a lot of people, financing a home has a great chance at improving their net worth over their lifetime.
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First, buying a home also gives you a place to live that you can call you own. People will happily pay a premium for that feature.
Second, personal finance is not a mathematical optimization problem. You need to consider the effects that certain financial moves have on (fallible) human decision making.
You are more likely to pay their mortgage _every_ month than you are to contribute to a different investment. A home is also more illiquid than an investment account so it is harder to cash out for toys/vacations. Sure, foreclosures and home equity loans happen, but, for a lot of people, financing a home has a great chance at improving their net worth over their lifetime.