paying off houses sooner

[prohornblower]

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Over time, I expect the 500K home to appreciate substantially (if I live in California or NYC.)

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So what if it does? It isn't a realized gain because you utilize (live in) it. Once you realize the gain (sell the home), you then have to find other shelter which has already realized this gain as well (in the same market). Unless you plan on selling a California home, and moving to a much cheaper market. But you can't be sure of that being in your future.

I don't think of my primary home as an investment, per se. If I own two homes or more, then yeah. That way, if the housing market booms, you can sell of the home you don't live in, stay in the first, and then re-buy a 2nd home after the market receeds a bit. But when you are utilizing your only home, it's not like you can just realize the profit very easily.