In the first three months of this year, house prices continued their previously inexorable climb, far outpacing incomes and wages growth. Now, thanks to changes to capital gain tax and negative gearing flagged in the budget, there is finally hope that housing affordability may improve. But after 26 years of damage, there is a long way to go.

The Bureau of Statistics’ total value of dwellings survey always brings feelings of despair. In the March quarter, average dwelling prices across the nation increased 2.1% – well ahead of the 0.8% increase in average household disposable income. And the annual increase of 10.3% is again well ahead of the growth on incomes.

But that is just the national average – in Western Australia dwelling prices rose 25% in the past year – absolutely monstering any notions of housing affordability:

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The price booms over the past three years have not been a Sydney-centric issue as was the case in the 2010s. Brisbane, Perth and Adelaide have experienced the biggest surge in prices:

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The price jump has been so extreme that Perth has joined Sydney, Canberra and Brisbane with a median house price above $1m, and Adelaide is not far behind:

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