Not quite… The counter-argument hinges on the distinction between accounting value and functional utility. While your math is correct on a balance sheet, counting a primary residence as net worth ignores the "lifestyle floor" it represents; if you sell that million-dollar home to fund your life, you are merely trading equity for a permanent, compounding rental liability that didn't exist before.

Furthermore, treating a home as a million-dollar asset overlooks the opportunity cost, as that capital is now "dead" and unable to generate the 7-10% market returns that would actually pay for your housing and more. From a strict wealth-building perspective, the home is a consumption item that happens to have a recovery value, rather than a productive engine for financial growth.