Which way will the property market go now?

[Bjauck]

I would suggest that the components of "household income" have changed a lot since the 1970's. Many more single parent households on low incomes, more beneficiaries, resulting in lower average household incomes. Doesn't change the fact though that NZ is short of housing, particularly in fast growing regions.

I would think there are several social trends at play. I think there would be more older people living alone (although back in the 1970's there sadly would still have been a lot of WW1 widows/ maiden aunts?) while poorer areas may have larger households. Some recent immigrant families may be more likely to have multi-generation households. I would also wager there are fewer single working twentysomethings able to afford their own or rent flats/houses alone.