over the last 10 years, adjusted to inflation, house prices doubled.
there for the earlier generations in the population spectrum who buy their first homes, or rent, now spend double what they once did to fund this.
That means they spend much less in the economy, hence why unemployment and business's started to fail in 2007/2008 when RBA was returning interest rates back to normal levels. As more and more money was sucked out of peoples weekly spend.
When house prices return back to normal levesl, new generations of people buying and renting will spend much less than what they do today.
this leaves more money in their weekly budget to spend back on the economy. which helps boost business's and employment.
this is simply why house prices cant go up forever, because there is no money left then for living, or creating jobs to buy the house's or pay the rents.
