I've noticed a lot of homeowners have most of their investments in real estate. The lack of diversity can hit hard.
It's not just something that the government can tax or ignore like foreign equities or cryptocurrency.
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It is going to get messy in some places in the coming years, as for example in Australia, the "handouts" have been quite extreme combined with massive government-driven initiatives that have aided the wealth gap to expand rapidly. That level of money-printing is unsustainable and when it stops, it is going to stop at a time when the effects of it are pushing inflation up - higher prices and less to spend - it is going to get hard for many.
Australia is going to get hit extremely hard decoupling from China, Coal and climate change, too.
Canada is also in a lot of trouble. They were overspending like mad before covid, now it's completely irrational.
Banks can't afford to raise the rates or stop lending.
Governments can't afford the welfare and can't win elections with austerity, all while having debts they can barely maintain and a poor economy to fall back on.
Workers can't afford taxes and inflation.
Business can't afford taxes and to pay workers minimum wages.
Unemployed and non-employed people are the worst off because they can't afford costs of living and they make up the majority of voters.