There are no casual relationships between anything, just reasons, cause and effect if you will.
Refer to the reasons in the previous post:
Add to that
1st home owners grant, initially $5,000 which like all good intentions fuelled an immediate price rise in houses, believe me, the ink wasn’t dry before construction costs went up.
Restrictions on availability of land for development.
e.g. Article in 1968 about the reason Sydney land costs were so high, the State Government owned all the land around Sydney and sold some on a year by year basis. if 60,000 blocks were required they released only 50,000 to drive up their return. An act of sheer bastardry.
Abnormally low interest rates which allow the borrowing of more money than necessary driving up prices, God help them if interest rates go to 11.5% or higher.
No requirement for a savings history which allows people with no financial discipline to apply for loans.
No requirement for a substantial deposit meaning loan repayments are higher leaving little or no room for ongoing maintenance or loan interest rises.
95% home loans which enables the purchase of more expensive houses than would otherwise be purchased.
The main increase has been in the price gouging of land costs, with us the split was 25%-75% land and house, now it is 50-50
Little extras like recycled water, a development I saw in Pakenham pumps your grey water 30 km to Carrum, processes it and pumps it back. that infrastructure costs, no only in installation but in upkeep.
Ask you some questions:
At what age did you start work?
At what age did you start saving?
Did you have a gap year?
Did you have overseas holidays?
Did you restrain your spending prior to deciding to buy a house?
Did you put a deposit on a block of land as soon as you could and pay it off so as to anchor the price?
in my suburb in the foothills property is now moving rapidly as it is realised how cheap it was (but it is a hour to the city by train), but everyone wants to live near the city, supply and demand drives prices up.
Every year you delayed your purchase for whatever reason the prices rose by $10-$50K and once you are behind, you never catch up.
I grew up in a 10sq house with 3 families living in it that had been through the Great Depression and WWII and I had it drummed into me, get your own house as soon as possible and they can’t take it off you.