that's the simple math part. If prices continue to outstrip wage growth you'd get a situation where the income to price ratio keeps growing, and the average house is 10, 20 and 30 times the average income. In the peanut gallery's scenario this is actually plausible.
So i pose my question again. Mining boom ends. ToT deteriorates. Income growth becomes muted. Where does strong house price growth come from?
Apparently foreign investment in our RP market, and mum and dad helping will ensure that we do reach a multiple of >10 on price vs wage.
