Kincella, taking your example is not uncommon as there are many parents who do put in significant equity for their kids to have a nice house. The example of the lady and the 60k pa income and the $750k shows a income to price inexcess of 12. based on historic averages that house is over priced. I know quite few who dont earn much yet live in homes, many fully paid as a result of parents help.
This is reason why the stats provided have under gone some structural change in that the average mortgage is only $300K, yet median housing is some $450K, the $150K difference to me represents equity from other sources. This combined with the increased size of houses and therefore cost, and the fact that many household items purchased in the 70s are much much less than present costs such as clothing, wash machines, ovens even the family car is cheaper today than those times, allowing increased expenditure on housing the meet dream home requirements.
