If a house is a large chunk of your wealth then yes, too little disposable income, in effect you're spending all your "wage" on rent.
Compare house prices + gross imputed rent to stock + dividends and they can be broadly similar. If I sell a home and invest in stocks the share price appreciation would ideally match house price increases and the net of tax dividends would ideally cover the gross rent of a similar sized/location home. Even if that were the case however there's the loss of liability matching. If stocks and in particular dividends decline, my rent likely wont.
Depends on geopolitics, but here in the UK generally its better to liability match (own) than not. But not to the extreme, where you're all-in on that alone and illiquid home value rich, cash/income poor. Our taxes are lower as well, of the order $2800 on $1.7M
