> housing is a consumption expense

only the building portion.

The land is not consumed when you live there. It only appreciates due to the developments around that land, making it more desirable and thus, more valuable.

And if the land is more valuable, then it makes sense for it to cost more - either as rent, or as capital appreciation.

> everyone gets to own a house

which is not a truth, but a want/desire. So housing is an investment first and foremost, and will always remain so.