(Aust Financial Review 26th May 2011)
According to the Organisation for Economic Co-operation and Development, the ratio of house prices to incomes is 34% above its long term average and the ratio of house prices to rents is 50% above its long term average, both being at the top end of OECD countries.
Also, the 2011 Demographia International Housing Affordability Survey shows that in Australia the median multiple of house prices to annual household income is double that of the US.
AMP economist Shane Oliver points out that in Los Angeles the median house price is $345,600 in Sydney it is $US$634,300. In Austin, in oil rich Texas, the median price is $189,100, in Perth it is $480,000.