Because no one wants to buy a house next door to a pink house with the creepy year-round Christmas decorations. That directly affects the valuation on someone's biggest investment they may ever make in life.
It's an expensive durable good, policy should be focused on making it cheaper over time.
(while maintaining or increasing suitability/utility, not by letting it decay)
My argument is that treating housing as an investment drives costs up over time and that at a policy level we should not seek to do that, we should seek to lower the cost of housing (while maintaining quality and so on).
In terms of policy I totally agree, but as an individual, nothing has done more for my personal wealth than my real estate transactions. Of course, a lot of that is my location, but in general, real estate (much like stock) goes up.