I think that the reason why house prices are beyond the reach of wage earners is because of the practice of borrowing to buy a house.
This is because the upward spiral of house prices is spearheaded by the Lifestyle Economy.
The Lifestyle Economy is based on the fractional reserve banking system whereby people borrow and are charged interest. The profits or interests (and capital) are deposited into the banking system but not all of them are, a fraction are used to give out more loans.
More loans then mean more houses are purchased and demand for houses go up since there is cheap credit.
This means that the rate of increase in house prices outpace the typically just above inflation salary increments.
Which is why you have the Lifestyle Economy.
This concept applies to cars as well.
In which case, We Are All Screwed. (Except if you are capitalist and business owner).
The only solution to this is entrepreneurship and the GIG ECONOMY whereby PEOPLE WORK FROM HOME and utilize social media to make multi million ringgit deals.
We. Are. All. Deal. Makers.
Menakhoda Zaman...
-Affan.