What has changed in the last 20-30 years so that it now takes two incomes to maintain a household?
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There are many factors, but one element is the fact that many households embraced having two incomes. This is gonna sound like circular reasoning.
In Australian mining towns, people are being paid huge amounts of money because mining is lucrative and they have to move into the middle of nowhere to work in the mines. The result of all these people earning big incomes is that crappy houses that were once worth $250k are now worth $600k. Because that’s the market. Money is abundant, housing is somewhat limited, price goes up.
Imagine a world where every household has a single income. What would house prices be like?
Now, have 30% of those households bring in a second income. What does that do to house prices? Those with money will willingly pay more for the premium or sought after property. Others embrace the dual income life so that they can also move up in the world.
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