What it used to be? 

 Fair point it's been like this for a while, but it is fundamentally a fiat printer subsidised activity. It has reached a point now where it's just ridiculous multiples of median salary in many western countries. 

I believe this why housing has been bid sky high and everyday people are struggling to own a home.  

 "I believe this is why housing [...]" 
What's the "this" in this sentence? 

 As in, the state subsidised and intervened in market for money and banking 

 also their self-deception as 'home owners'.... 

 I see your point when talking about a rental property, but I don't look at a primary home mortgage in the same way given the use case. 

 Under 10%. I would say most see it as “the property ladder” & they bend over backwards to make “the most crucial investment of their life”

These are the kind of people that don’t want to spend their spare time investing, & shouldn’t 

They know something is up with the money, just never have the time to truly ask why… 

 I'd rather have some bitcoin & a fifth of a house, than no bitcoin and half of a house 🤷‍♂️ 

 "Real estate always goes up" 

 Until demand side drops. 

 Many people became wealthy on real estate simply by leveraging and not knowing it and market went up. 

 Probably not many, and it’s also probably the largest financial product they’ll every buy. But since they’re effectively going short fiat it almost always works out. 

 fixed terms and never marked to market though, much better risk profile than most levered positions 

 Very few. Most just see it as the only way to accumulate wealth.

It's crazy that it's one of the few asset classes where this behaviour is widely accepted. What's even crazier is that these loans are rarely marked to market. 

 It helps that there's no margin calls. If anything, in many states you can just send jinglemail and only be out the cash you've put down while the RMBS holders scramble to recoup whatever they can with a house they never wanted to have to sell -- usually amid a falling market.

The way risks are distorted by the political machinations of the mortgage industry makes it pretty painfully obvious why the housing market is such a mess. And then they have the audacity to blame expensive housing on "capitalism."