A place to live is a base of the hierarchy of needs, but giving away $2000 to someone else for a place to live vs. putting $2000 a month into your own assets is not a red herring.
Developers want equity because it is financial security and passive income for them. Regular Joes want it so they don't pay rent in perpetuity; that they may have a place to live in old age without working, among other reasons.