I (and some economists) draw that conclusion from the data, over time. Average incomes vs average house prices tracked in the same range forever..... until 1990. So what happened in 1990 to begin that separation? Some economists say that policy change was the smoking gun. Add some other equally stupid policies and incentives into the mix and the rate of separation gets quicker. Until we end up where we are now.
It was a cultural switch, it was the point where housing was no longer about shelter and a human right and became a passive wealth generation mechanism. That is why some generations defend it so hardly because they benefitted from it the most. Every generation since has benefitted less and now the generations just becoming voters and all to follow are completely shafted by it. That is why they look for a voting option willing to try and swing things back in their favor.
Australia is feeling the pitch far more than other countries due to global issues..... because of our housing bubble. Absurdly I don't think the cost of shelter is included with calculating inflation rate? But your rent/mortgage is sure as hell what is hurting people the most. If your house was priced to reality, so would your rent/mortgage be. We could have then used the only tool in the shed to beat inflation...... interest rates. As it stands that tool is blunt and has a broken handle.
