Is mortgage-backed financial security hurting us?

Our current economic system provides vast amounts of debt to governments and private individuals.

This credit creation is backed and secured by indirect/direct ownership of property by banks – because they are seen as the safest and most competitive general wealth store.

Across history, credit security has been backed by different things, reflecting the different dynamics and "safe bets" of eras of history. Point being: it doesn't need to be this way. We don't need to live under a financial system that makes home ownership harder via bank driven property demand creating artificially increased prices. So why do we? And is there value in changing to a different mode of security?