> our housing policies make home ownership a highly-leveraged, government-backed investment that's guaranteed to appreciate exponentially forever
It's not appreciating, it's pacing real inflation, if you're lucky.
You can tell by comparing it to other significant $USD priced items over decades: gold, oil, healthcare, education, cost of a new car.
Housing isn't even outrunning the price inflation on new cars (a purely capital eating monster). In 2000 the average price of a new car was $21,000; today it's $41,000 (no joke). In 2000 the average home sale price (not new homes, any homes), was ~$205,000; today it's a bit over $400,000.
Most people get their asses handed to them in real terms on their home 'investments.' Inflation alone is enough to ensure they don't earn a real return. And then once you add in maintenance, repairs, interest, insurance and property taxes, forget about it. Housing as a good investment is one of the greatest financial frauds ever sold to the masses. It only works on average in fantasy if someone drops context of the total cost across 30 or 50 years. For the average person it becomes a very mediocre form of savings.
China's cheap manufacturing spared the US a significant cost of living beating over the past 20 years, by supplying a vast deflationary push down on US consumer prices. That shielded households from some of the currency destruction (inflationary) hit that is more widely reflected in the prior mentioned USD priced items.