> Why is a mortgage strictly worse for living off of savings?

It’s not strictly worse but I assume it feels like a bigger commitment with more disastrous consequences should anything go wrong?

Foreclose on your house, your biggest asset is gone. That thing you worked for for so long.

Get kicked out of rented place. Eh, wasn’t yours anyway. Find smaller one or in a worse location, which you can afford.

Either way in my case buying is strictly worse because I can’t afford the down payment so there’s really just one option. Well, one comfortable option. I could always go homeless I guess. Would save me a lot per month ...

> Paying down my mortgage is just a bit more expensive than renting my apartment was.

Unless you already have a substantial nest egg or took out an expensive mortgage, your life savings were substantially reduced by the down payment. In addition to a more expensive monthly payment there are property taxes, maintenance costs ($ and time), HOA fees, and other burdens depending on your region and property type.

What do you do if the neighborhood or market changes and you really can't sell your house after a year?

> Paying down my mortgage is just a bit more expensive than renting my apartment was.

That might depend on where you are and other factors.

> Why is a mortgage strictly worse for living off of savings?

Maybe it's not and people are just hedging their bets?