Paying for a house with bitcoin sounds to me a mistake or lack of financial knowledge. Bitcoin is better than Fiat. Bitcoin increases in value and fiat faces inflation. Why then would one spend Bitcoin instead of fiat on a house rent which may expire in few years?
You have to take into consideration that the person may already be a Bitcoin investor for a long time, so he isn't purchasing Bitcoin to buy or rent a house. He already has Bitcoin and will use it as currency. Strange would be to have BTCs and exchange them into fiat to purchase or rent a house, because it would involve extra costs with transactions and exchanging fees. Unfortunatelly, due to not having many offers of houses for sale through BTC payment method, that is what Bitcoin investors are forced to do in order to achieve the dream of the self-owned house, or even to pay for a rent.
Bitcoin is available to be used for everything fiat is used for. There isn't any contraindications. If you can hold Bitcoin for future gains, good for you, but some people have to use their coins in order to pay for a living, food, bills and so on... For many young people, renting a house is necessary, especially when studying and working far from their families.
Accommodating the Bitcoin can birth the person more money to pay his next house rent.
If you can buy the house, it's great. However, not everyone has enough money to do so, therefore renting might be their only alternative for now.