I don't think there's any question that, strictly financially and on average, purchasing a house is an inferior investment to putting the same money in equities. But the range of relevant personal and local considerations make the issue difficult to analyze beyond that bare observation.

I will offer one that hasn't been mentioned yet: using your house as a source of leverage for an equity portfolio.

I have refinanced my house with "cash out" three times in thirty years, most recently at 2.75% (good until 2029). For most of those thirty years I've had more (now a lot more) than my original downpayment in the market. My current mortgage is for a good deal more more than the house cost when I bought it; but it's less than half what the house next door rents for.

Baltassar