Episode 6 challenges the idea that higher wages drive higher capital growth. Using ABS census data across all suburbs since 1991, we group markets by household income and by income growth over 5 to 25 years and find no consistent link to future price gains.

The flaw is practical as well as statistical. Buyers can come from anywhere, census incomes are lagged and noisy, and borrowing capacity depends on more than wages. In many eras the pattern reverses, and higher prices can lift the incomes recorded later, not the other way around.

The takeaway is clear. Ignore wage and wage growth metrics when selecting suburbs and focus on what actually moves prices.

Episode Highlights:

=============================================================

🎙️ Watch all Expert Busting episodes:

📚 Read the full data-backed articles:

🔎 Learn how to use Suburb Data to analyse property data:

=============================================================

Expert Busting Series

#expertbustingseries #propertymyths #australianproperty #propertyinvesting #datadriveninvesting #suburbdata #DSR #propertytruths #realestateinvesting

=============================================================

DISCLAIMER:

• The information provided is not tailored to your individual circumstances, and we do not consider your specific financial situation.