Does household income drive property prices?

Commentators often refer to the price of property relative to household incomes. For example, it is estimated that property in Melbourne and Sydney now costs more than 10 times the median household income. But is this really a meaningful measure because if it is, property cannot continue to grow at a faster rate than incomes (a point often made). If prices continue to rise faster than income, how will property be affordable? At the beginning of this year, I wrote about the factors...