I would rather live in a 200k house that is paid off then have a mortgage on 10m or pay rent. Not spending is better than spending. Owning something that has appreciating value is better than renting something you don't own.

Renting is good until you are set up to own, financing is good at a reasonable interest rate. Best case scenario is owning with no mortgage.

But if you can afford a 1m house and that's it, then you can afford two 200k houses or a duplex and to make money off of renting the second house.

At the place where you can afford 1m in rent, you don't need to rent.