I'd say that most people do not buy a house for the investment. They actually live in it and any value appreciation is a side-effect. A pleasant one, but not the primary goal of the purchase.
https://oregoneconomicanalysis.com/2021/03/16/who-benefits-f...
Ideally, I think, home prices would be fairly stable - neither appreciating a lot, nor dropping in value. Boring. That would also make them a 'bad' investment for corporations looking to make a buck by buying and holding.