Homes appreciate. And mortgage interest is tax deductible. Case in point: my dad's former boss bought a house for about $1mil. Put about $500k of new work into it. Sold it for $6mil after 10 years. That's a good return. The big negative for me is property tax, which in Texas is fairly high. That, and homeowner's insurance.

Another thing: it's not inconceivable to buy a house with cash, if you postpone your purchase and live frugally for a while. That mostly nullifies the argument about all the mortage interest you pay.