EBS 6: High Wages | Why High Salary Doesn’t Mean High Growth

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:
00:00 - Introduction
01:15 - Buyers can come from anywhere
07:58 - Household income vs Capital growth
13:56 - 5 year growth — Household income vs Capital growth
17:02 - 10 year growth — Household income vs Capital growth
18:28 - 15 year growth — Household income vs Capital growth
18:53 - 20 year growth — Household income vs Capital growth
19:37 - 25 year growth — Household income vs Capital growth
20:13 - Household income relative to state vs Capital growth
21:24 - 5 year household income growth relative to state income growth vs Capital growth
23:30 - Cause correlation
26:02 Conclusion

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🎙️ Watch all Expert Busting episodes:
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📚 Read the full data-backed articles:
https://suburbdata.com.au/education-expert-busting/

🔎 Learn how to use Suburb Data to analyse property data:
https://www.youtube.com/playlist?list=PLWD8h9iMOyGhDsFFEMdzP5fvfenYvbp0B

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Expert Busting Series
A data-driven investigation into property myths.
We fact-check bold claims, expose misleading advice, and reveal what the numbers actually say.
Evidence over confidence. Data over hype.

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

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