Australia takes silver medal in global house price race

Those pesky New Zealanders have beaten us again, stealing the gold medal for the unenviable title of having had the largest increase in real house prices since 1980:

At least we have beaten them on household debt, where Australia has also taken the silver medal (behind Switzerland):

C’mon Australia, we need to try harder. Coming second is first last [/S].

Unconventional Economist


  1. You really do want to be the biggest loser. I think there is a prize if memory serves right.

  2. supply / demand…simple really, cram in million new residents from elsewhere every three years via a shrewd immigration program and the housing shortage drives prices through the roof… it has been very effective for 20 years lining he pockets of boomers at the expense of young Australians, now it will be the root cause of the bankruptcies of hundreds of thousands of those youngsters who were suckered into the Ponzi scheme at the top! hats off to the boomer Aus federal governments past and present for designing and executing this once-in-a-generation sh!t storm!!

        • You’d better pull your finger out and contribute, then. I can’t always be doing your job for you…

          Oh and PS, For those playing along at home, I think I know what the next play might be from here, in the big scheme of things. I think there may well be a two-tier debt system coming. Grandfathered (low rate) back-book and a front book that is smaller but higher rate. I think that approach tick most boxes in terms of keeping banks whole, debtors on the hook, collateral not dumped on market, boomers at the top of the pack.

    • Goldstandard1MEMBER

      It’s not Supply/Demand at all.
      More like Debt/FOMO…..and both rooted for the foreseeable future.

      • debt and FOMO are simply a consequence of the demand side far out-stripping supply and subsequent price hikes, again, thanks to a ridiculous rate of growth in absolute population brought about by those who benefitted from it… its a #Boomer’s world

    • Thanks bendy wire.
      Understand that the housing shortage is the key to understanding high rents and high prices. They are not possible without the shortage.

  3. kannigetMEMBER

    So we have had rampant asset growth, rampant debt growth and at least for the last few year stagnant income growth.

    How can anyone think this is a good situation?

    • For those making a mozza out of it (Harry Trig, Gerry Harvey etc) it must seem like a great situation that should be perpetuated and supported as far as possible. Don’t forget The Golden Rule…”He who has the gold, makes the rules”.

    • For Lucy, the goodness is in the “vibrancy”. To Phil, it’s the “dynamism”. What’s not to like?

      Surely Australia claimed the gold, for the largest increase in real house fugliness since 1980?

    • People can’t do math. A significant proportion of the population either thinks they are on the road to riches or that they will be able to get onto the road to riches. That, ultimately, is what is perpetuating the ponzi. Without a crash, to destroy that faith, the ponzi will just keep going and get worse and worse. However, personally, I think we have hit the turning point.

      • Jumping jack flash

        Debt = wealth, doesn’t it? If I own a million dollars of debt I’m a millionaire? Right?

        What’s even better is if you get someone else to take on the enormous pile of debt and hand it all to you. That’s when you know you’re a winner in the New Economy.

        Everyone else has to wait their turn for someone else to hand them a pile of debt, but don’t worry, their turn is all but assured. To join the queue to receive your pile of someone else’s debt, all you need to do is take on an economy-crushingly-huge pile of debt yourself, and hand it to someone.

        Its that easy.

  4. Australia and NZ housing bubbles have a lot in common.
    Our big 4 banks make up 85% of bank lending in NZ, so we can claim their 1st place as our first place. That gives Australia 1st and 2nd place.

  5. Jumping jack flash

    Nice. I love that chart. Notice the growth. It explains everything.

    There is a better chart somewhere that shows the nominal debt growth rather than the debt/GDP. It also is a great chart for explaining what went wrong, and not only that, it also it shows the possible solutions.