Re:Dan Price says raising min wage to $70k led to baby boom,...
by ceejayoz on Wednesday September 15, 2021 @03:05PM
(#28543006)
The point is that the difference in wealth between AU and US is, to at least some extent, due to a vast amount of largely inaccessible paper wealth.
If I'm willing to sell my house in Sydney and move to rural Queensland, I'm wealthy. If I'm not, selling my $1M house means I have to go find another $1M house now.
(And yes, the median house price in Sydney is over $1M.)
Re:Dan Price says raising min wage to $70k led to baby boom,...
by fulafel on Thursday September 16, 2021 @02:31AM
(#28548744)
I think big cities have diverged from the country average globally and the impact on country average metrics then depends on the degree of urbanization.
According to https://en.wikipedia.org/wiki/Urbanization_by_country the urbanization rate in AU is ~2x the US, so people are moving to cities at a much bigger rate? Even in the face of the high prices.
But yep I still see what you mean, on the country-averages level the AU prices seem to have been constantly rising faster in AU than US.
Re:Dan Price says raising min wage to $70k led to baby boom,...
by ceejayoz on Thursday September 16, 2021 @02:53PM
(#28555670)
The median home price in Melbourne is nearly $1M as well; between the two cities, that's about 40% of the population of Australia that needs a million bucks to own a house.
> The Australian property bubble is the economic theory that the Australian property market has become or is becoming significantly overpriced [...]
IOW bubbles can only be called historically asset prices fall dramatically and even then typically in housing they don't fall that much.
Housing prices have been rising much faster than inflation in a lot of places due to historically cheap financing. The alternatives to "bubble popping" are that they plateau, or continue rising, or decrease moderately over time.