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As Peter posted here there are some who believe that banks caused the property boom by way of their influence in the supply of money. SC, essentially the question you are asking is almost the opposite. If an increase in the money supply caused (or was, at the least, a major contributor)...

This is called the... Paradox of Thrift The paradox is the inconsistency between the apparently virtuous nature of household saving and the potentially undesirable consequences of such saving. If most households decide to save a larger proportion of their incomes then they will...

Yep, apologies for a brain-snap. Just got back from lunch and realised what I wrote. Real wages fell during the 80's (something I've acknowledged on at least 2 occasions before on this forum, but for some reason forgot earlier today). Mark :o

Further to my original post, above, using data available from the RBA and combining it with existing CPI data (refer to numerous other posts), I constructed the attached graph. It is a 12 month (financial year) average of the interest rate of a standard variable mortgage, and the CPI rate...

Agree with everything written so far re: household earnings and variants between capitals, etc. But these are all demand side factors. But......there is a supply side to this equation too. As has been acknowledges in this thread, real estate tends to be bought with borrowed money. But...