> The tax system will always reward home ownership. By time you are on your third house you will be paying cash, so even mortgage issues will go away. I don't know anyone on their third property who has a huge mortgage...maybe a small supplemental one but that is about it.

Past performance is no guarantee of future results. Housing prices have risen faster than inflation in California over virtually any period ending today other than cherry picking the top of the housing bubble. Nothing says this will always be the case. Just ask the homeowners in Japan or in parts of the rust belt. I'm a homeowner in California but I also remember the last time everyone said housing prices only go up.

Furthermore, the tax system may not always reward home ownership. New caps on mortgage interest deductions are already affecting California houses although the effect is currently small. It used to be true that homeowners always itemized deductions. For 2018, it'll be about a wash for me as opposed to taking the standard.