And what's wrong with that? You still own the house in full and can live in it till you die whether it's worth $1MM or $1. There should be no guarantee for your house to appreciate over time; that's what got us in this mess in the first place.

If you want to turn your housing into an invested vehicle to sell an make you rich then you're basically gambling and should fully accept the risks of losing money in the process like with any other investment.

Capitalism also means letting bad business or poor investments go bust, not prop them up artificially for decades via low interest rates, zoning laws and nimbyism to make them worth more.