Your points are certainly valid, as far as they go. However, even if all the houses go up in price together, as long as that’s much faster than inflation, you can use the new equity (e.g., reverse mortgage if you’re forced into it).

You could also move to one of those places where housing didn’t appreciate so rapidly.

Finally, in both Mr. Felix’s “rule” and in my counter examples, the assumption was that housing appreciates only slightly faster than inflation in the long run.

Thus, your 60% appreciation was all gravy ☺.