I agree completely. We need also to consider that although "the rich get richer while the poor get poorer", there is an ever increasing number of people who have the means to buy the property they want. Hence the ever increasing demand for quality, inner city suburbs. The population is growing, and I think Australians, in general, are probably wealthier than they have ever been. I can't imagine living like my parents had to - but good on them for doing what they had to do.
I also wonder what effect the Baby Boomers supporting their adult children is having on the market. Once upon a time you rented while you saved, and eventually got you deposit to a point where you could afford a small house. With shared equity loans, gifts and handouts from Baby Boomers to kids, perhaps this is distorting the market also.
My firm opinion is that regardless of how high prices become, there will always be those who can afford them, and those who will find ways to borrow for them. My plan is to have already bought the assets that these peoples' hearts desire (but now, while they're still easily affordable).
The tram then car both made sub-urb-s and co-urban-ization viable.
Telecomunications has made non-ubr-an, non-agricultural living viable.
It remains to be see if a significant portion of people take the opportunity to live non-urb-an lives.
Perhaps sufficient choosing a lower non-urb-an debt to income ratio will significantly limit future increases in the urb-an debt to income ratio.