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In fact there are other frictional costs associated with purchasing real estate that make it impractical (or "good debt") for some people that can't afford to be tied to one location for long by owning a property. For those people, a mortgage probably wouldn't be practical even if it were a 0% APR.

or they have a reallocation package that pays the costs, but that doesn't help with risk associated with short term ownership.

I have seen irrational acts with real estate. Moving to California having bought at the high of their local real estate market and sold at a low, and then deciding they didn't want to stay in California. Again, having bought at the high and sold at a low.
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