This argument isn’t as solid as it sounds, mainly because you have to live somewhere. So you’re going to need to pay rent and you need to subtract that off the profits from S&P investments.

You also generally can’t borrow 5x your income and invest it, but you can do that on a house, so if you think house prices will rise, even a tiny bit, then you’re missing out on a chance for major leverage you won’t get elsewhere. Hint: house prices don’t really go down much, because everyone is leveraged and literally can’t afford to sell below a certain point.

Finally there’s something to be said for the security and ability to make a house your own. Not being dependent on a landlord’s whims and decisions can be of huge value.