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Equity's only half the equation, though. Rent is much more closely linked to growth in wages, and serviceability limits must eventually be reached.

Sorry, my mistake: it's not relative to household income, it's cost in real $, i.e. taking into account inflation etc., relative to 1890. So a house today costs four times as much, in real terms, as it did in 1890 through approx 1962. A house now costs 4 times as much as it did 2 generations...

I don't know if you looked at the chart, but um, no, prices have not been flat since 2003. The ratio has increased from around 2.5 to around 4 in that time.

But wages haven't caught up, for over 50 years now. Imagine you're blowing up a balloon. When it's 60% full, some people call "it's going to burst!". At 70% full, skeptics say "see, it didn't burst!" At 80% full, the concerned parties say again: "it's going to burst!" And at...