Part of the payment is for services, but it doesn't make sense overall to call it a service because the cost is only in small part determined by the value of upkeep etc. being handled, there is no option to do this yourself instead and not pay. The main thing driving the cost of housing is the supply of housing, the desirability of the location, and who owns it all.
Think about mobile homes; how well built a mobile home is, or how well it is maintained, ultimately doesn't matter that much and it will still depreciate if it is located on rented land, because the real driver of housing value is the value of the legal right to live in that particular location, and that right is ultimately controlled by the owner of the lot. Same goes for any housing; what matters most is the land, being able to safely and legally sleep there, and the ability of the property owner to control who can do that.