Australian Housing

When you read articles about Australian housing affordability, it is often comparing the single average adult wage to house prices, from generations ago.

The articles generally say something like, ‘a house was worth three times the annual average wage back in the sixties and is now worth 10 times the average wage. This shows housing has become unaffordable.’

You can’t compare the two because back in the sixties it was one wage bidding on real estate.

The state of Australian housing

The days of Dad going off to work, while Mum tends the children are long gone, just like the black and white TVs of that era.

It is now usually at least two incomes bidding on Australian real estate, land price has quickly factored that in. So you can’t compare the two figures.

These days you need to find historical figures for combined household income and compare the two.

When you do that you may find housing affordability hasn’t run away at all, but is simply keeping pace with wages.

Related articles

Could This Trigger an Aussie Property Price Collapse?

Australia’s economy has always a been a simple yet resilient one. We’re a commodity exporter. The wealth generated from this sector trickles down through jobs, tax revenues, superannuation, and property...

When Mercy Turns to Malice: The Big Four Bank’s Ticking Time Bomb

It is as clear as day that the Aussie big four banks can’t keep up this farce. Pushing back the loan holiday wasn’t what they wanted, but it was what they had to do. Their kindness has become their biggest weakness...

Five Million in Lockdown and Nearly One Million Question Marks for Banks

Yesterday, well, I’m sure you know what happened. The state of Victoria is back to square one again. And today, the Big Four announced that they would extend the six-month repayment holiday by a further four...

Government HomeBuilder Policy Designed to Prop Up Housing at All Costs

Take for instance the wonderful, exciting HomeBuilder policy the Aussie government has decided is a real winner. That should help underpin the only ace the Aussie government has anymore. Can’t cut rates any...

This One Change Could Lead to the Next Aussie Property Market Boom

But I certainly do believe the Aussie property market isn’t as doomed as many think. Not with this sort of tentative response, anyway. For investors, this means you could be looking at an unprecedented opportunity...

Where to Find the Biggest Real Estate Winners after the COVID Lockdown

In today’s final guest essay, Catherine turns her attention to the future for Australian house prices...once this COVID crisis is behind us. She gives property buyers, investors, and developers an insight into when and where she believes the next leg of the Australian real estate boom will kick off...