Australia housing bubble

[John 13]

Originally Posted by roKWiz

We needed a good recession. A housing fall would be nice.

While this sounds a bit severe (depending where one sits in the domestic housing system) and the 'index of affordability" currently sits around 7 in the major capital cities, it was a lot better for first home buyers when it was 4-5.( a ratio variously calculated, but for example cost of house/average adult wage.) However the housing market is very complex location, interest rates, population growth and taxpayer funded grants among other factors feed into the mix.
It always appears that the domestic building industry is the major employer in Australia, remember John Howards "housing led recovery" well are we still looking for that ?
Here in Perth, the last 20 years has seen a dramatic simplification of house construction, requiring a lot less on site skill and a lot of frills have been cut out. Personally I would prefer to see government's investing tax payers' contributions in either infrastructure or in industries which provide a developmental progression of skill/knowledge levels for employees.