I think they're arguing that the real contribution of home ownership is the incentive to regularly invest in an appreciating asset, not the fact that the asset is a house. I don't think they're arguing that the incentive is irrational.
Making it appreciate is very problematic.
But policy should never treat it as an asset. For policy, it should be a consumable good that only happens to take a very long time to consume.
nobody is "making it appreciate" - it's a natural consequence of people desiring a home, and the supply not keeping up (whether by physical constraints, or by political/policy constraints).
> political/policy constraints
You just found exactly who is making it appreciate