The idea that spending money to buy a home is “building wealth” is incredibly stupid. It’s bad advice for everyone but a real estate agent.
a home IS an asset and wealth. it is only a liability on volcano's path on big island/Hawaii.
An asset it something that makes you money, like rental income from rental properties, profit from a business or investment, stocks, or bonds.
A liability is something that costs you money. A house to live in, apartment, a car, healthcare, food, etc.
The home is an asset. Associated expenses are liabilities.
Assets certainly don’t need to make anyone any money; unsold inventory is an “asset” most firms would be happy to be rid of...
This is a very narrow definition not taught in accounting.
"Asset", "Liability", and "Net worth" are words with very specific meanings.
An asset is something that has value. (producing income isn't a requirement) A liability is an expense. An item can be both an asset (your home has a value) and a liability (the mortgage). The net worth is the difference.
Let’s divide the things that earn money from the things that cost money. Some of those things you can own. If they are a thing you own but cost money and you plan to consume it (house, car, food) it’s a liability. If they are thing you own that earns money or you plan on selling for profit it’s an asset.
A home could be an asset, but they usually aren’t. People don’t buy homes to sell them at a profit or rent them out, they buy them to consume/live in them (like a car). Thus they’re a liability. Most people buy a mortgage not a home, so no the house they live in is definitely not their asset. It’s the banks asset, and their mortgage is a huge liability.
A house, per se, is an asset. It may or may not have liabilities attached to it. (Or produce maintenance expenses, which is a different thing altogether.)
> If you own it and don't use or rent it, it can be a liability if it's not even a suitable investment vehicle (e.g. with stable or falling prices).
You seem to have confused a depreciating asset with a liability.