long term trends, page-5

Another interesting read Elpus. Another factor is council changes on features developers must put into new developments(underground power, sewage, water). In addition there are changes to what can be built. We live in a semi-rural area of Perth where we built in 92. Changes since then (sewage, rain water tanks, roof area) would cost us aproximately $50,000 to upgrade to current standards. It wont happen.

I am also a bit wary of the house affordability index. It is basically the house-land cost divided by the median household income of ALL residents of the area. A better measure, if it was available, would be cost divided by household income of new people purchasing.

Mandurah allways looks like the least affordable suburb in Australia. However up till about 95 most of the people moving there were retirees or close to it. I know several who still live there but are now pensioners or part pensioners. This really distorts Mandurah house affordability due to their low income. But since they already own their houses, with no mortgage, they dont care that they cant afford to buy there now.Rockingham is somewhat similar.