AusFinance

Most of the nation's millionaires are that wealthy because they purchased houses 20+ years ago and they can sell them for over $1 Million now.

Sell and move where ? Sure, aome arbitrage if you move from Sydney to Grafton but selling and re buying in Sydney won't make you "rich" Negative gearing (negative meaning they're losing and offsetting that loss against other income and relyibg on a nice tax payer subsidy when they sell) housing is a tax payer subsidy, they're getting rich on the back of the tax payer not from productive enterpise.

That asdie, what you're describing is a ponzi scheme, as theres no productivity increase to account for the price increase above inflation.

As Warren Buffet etal has pointed out, housing is priced at whatever people can borrow. There are other ways of doing housing by treating housing as homes and not speculation, for example here

https://www.abc.net.au/news/2023-08-04/vienna-s-social-housing-and-low-rent-strategy/102639674

We have vast amounts of resources diverted from productive enterprise etc to servicing loans for houses.