Oh but yes you can financialize. Financializatuon of real estate isn't really about outsized returns, it's the return to risk ratio that has potential for massive leverage.

So if you increase supply and then people get bigger homes, etc..., until prices reach an equilibrium, then as long as rents exceed maintenance costs and land doesn't depreciate, you have a leverage (read: financialization) opportunity.

Then prices rise again until you do something else, and eventually you approach infrastructure scaling limits.