"Why is real estate purchased for long-term hold so sinister ... but paying 23X for the S&P for long term hold is OK?"

Well, for one, becuase interest rates are already rising and will continue to rise over the next few years, making mortgage payments more expensive.  And, according to the numerous studies, most people can't afford that.

Secondly, by purchasing real estate, people are gambling with about 20 years of income.  those stakes are way too big for anyone to be playing with.

Finally, any rationale person can take a look at this market and determine that it is poised to collapse.  There is no way these prices are sustainable or justified.

Any other questions?