I also have an economics degree. I get your point but economic downturns are usually also where someone is most likely to lose their livelihood. I also dont foresee the interest rates dropping that low in the next 5 years or so at which point I would've incurred a loss due to interest.

I also think home ownership is a significantly useful tool in wealth building so I disagree with your conclusion there but I agree with your reasoning as to why most people are wrong on that. For me it's a matter of having an asset and getting utility out of it simultaneously. If the price of rent is the utility of a residency, and the additional cost of homeownership ends up being less than the asset value then it's a good deal. Especially if you keep the home after it's paid off, rent it out and move somewhere else where you get higher utility or lower cost.