House is a purchased asset that decreases you expenses, or increases your income as homeowner equivalent rent, depending on how you want to look at it.
(E.g. It would cost me $2500 a month to rent where I live ($30,000 a year). To generate this income in retirement at a 4% safe widthdrawal rate, I would need $750,000. Since my house only cost $360,000, this long term purchase decreased my FIRE number by $390,000.)
Ps, yes I know I am not taking into account property taxes and maintenance in the above. It is an example only.