Are you going to live in your current home when you retire?
If Yes, your home has $0 value for retirement income. Ignore it in any further calculations, other than for taxes, repairs and insurance expenses in retirement.
Unless you intend to rent out a room or more in it. In that case, consider it as an income source for that amount of income.
If no, are you going to rent out the house or sell it?
If you are going to rent it out, that's a whole discussion on its own as to whether it's going to be a money maker or loser.
If not, how much will it cost to buy a new, smaller home and move there? If you will still have any money left over, you can count it.