True, only some people will lose their houses. But don't overlook the knock-on effects. Neighbors will see their houses lose value, retailers and tradesmen will lose business from customers in financial distress. Local governments will lose property tax revenue that funds police, fire, schools, etc. And so on.

I went through the 1990s housing crash in SoCal. (You know, the one that some people on this thread used to deny ever happened.) I didn't lose my house, not ever close. But it still cost me plenty of money.