Because buying a house now has a limited upside in value appreciation compared to the stock market. High interest rates and high prices make home price appreciation very limited - in many cases, going down. Meanwhile, the stock market continues to go up. Owning a home also locks your money in while your money is liquid in the stock market.

Further more, I'm still getting 4% return on cash. A lot of people probably think that's still a better return than real estate in the current situation.

So in the end, it's really all about interest rates.

Easy peasy. People buy homes because they feel psychologically insecure and uncertain about being able to keep roof on their heads in the future. It never made sense as an investment apart from a short period in 1970s and even that because stock market was in shit then.

Rich people know they face no risk of not being able to afford housing. So they put their money where the returns are.

Houses are so expensive. The property tax on a $1m house is $10k or more a year. Add insurance, sewer fees, water bills, electricity and heating. It’s nuts. And honestly, it’s over capacity for most people once the kids are gone. Exit fees for selling and taxes are also tough. Renting is fine. You match the required utility with your needs.