[quote=an]But I think you put more weight and correlation to rates than inflation. That’s what I’m trying to convey, is that wage inflation is probably a better correlation than rates.[/quote]

I’m not claiming any more weight or correlation to rates than inflation. I’m claiming that rates combined with inflation are the principle drivers of house price increases.

And I agree that wage inflation would be more appropriate than general inflation, and can see your point that low wage earners can probably be ignored. But I also doubt that there would be much difference in the charts. Maybe someone like Rich has wage inflation data we could use?