Property prices have grown at twice the rate of wages in the past 20 years. CoreLogic figures show that wages have increased 82% in the past 20 years while Australian home values have risen, on average, by 193%.
In the past 12 months alone Australian dwelling values have increased by 22%. According to ABS figures the Australian wage price index rose by only 2.2% in the past 12 months.
Reserve Bank of Australia assistant governor Luci Ellis told a parliamentary committee that because of property price increases the most realistic way for many Australians to enter the housing market was now through their parents.
The Standing Committee on Tax and Revenue for an inquiry into housing affordability and supply, is currently examining property taxes, regulation and supply issues which are driving up prices.
The difference in growth rates is most extreme in Tasmania with property values up by almost 300% in the past 20 years compared with an 84% rise in its state wage price index.construction.”