But for decades, the US economy has sold SFH as just that. Every time I go to the bank, I get solicited by a bank employee to take out a HELOC.

I agree that's how it should be, but unfortunately buying a house is commonly understood to be a great investment strategy. And in this precarious economy with few safety nets, people clutch tightly to their home values. These people also have lots of power within HOAs (a strange and powerful quasi-government structure) and tends to be more influential in local politics.

As someone with progressive politics, I believe this is a huge problem.