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The Fallacy
All of the aforementioned bad ideas rest on a flawed assumption—that housing is a financial investment. It isn’t, and never was. Housing is an asset that is essentially a consumption good. It is consumed each day by living in the house and all that entails.
Not a strict fallacy, I agree, but people miscategorize housing.
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I'd argue that the structure is a depreciating durable good, but the right to use the land could be considered an investment.
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That's fine, but is it how people think about their homes?
I'd say the expectation is that it's an appreciating durable capital good.
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Homeownership wealth is not a fallacy, but Trump's remarks about wanting to keep house prices is at direct odds with his goals of housing affordability.