[Panzer04]

Its interesting to consider the effects. Assuming you must live in a house, you actually lose nothing in a devaluation.

If you own outright, all houses being cheaper means you can buy exactly as much house as you already owned if you sold.

If you don't own, houses being cheaper lets you buy more house.

Houses being cheaper relative to everything else means that if you sold your house you can buy less of other stuff with that money, but given you need a home anyway you've not actually lost anything in a fundamental sense. It's probably a bit too abstract to convince people to look at it this way though, and realistically you are losing value relative to everything but housing.

It's overall just a short-term mindset, sadly. Most people derive the majority of their income from things unrelated to property, so cheaper property lets them buy more house than otherwise regardless.