Does "sustainable" mean "prices dropping back to realistic levels that people can afford" (unlikely) or "prices will level off and stop rising so ridiculously fast" (more likely)?
Chloe Swarbrick has been asking this question. Locking in house prices at 11x incomes instead of them spiraling is a step in the right direction, but does not suddenly make them affordable.
Demographia uses something like a 3x ratio to determine what is considered 'affordable' and we are so far past 'severely unaffordable' that I don't even know what they classify our house prices as anymore.
Remember, the economy relies on discretionary spending at a certain level to sustain hospo, tourism and other industries, and we have people committing at least 40% of their income for the next 30 years on accommodation costs alone - often just to get a starter home.
There just won't be enough money circulating in the economy unless something is done to reduce accommodation costs and owner-occupiers given a soft-landing so they don't just go to the mattresses
We still need people to spend and have families and we are locking a future where fewer and fewer people can afford to do that.
Indeed, I barely eat out or get takeaways now. I hear all the restaurants and places say they're finding it tough with lockdowns etc but who are all these people who can afford to eat out at restaurants all the time? I know I'm certainly not one of them. I used to be able to, but then house prices (or rents, in my case) jumped and suddenly that "eating out" budget simply disappeared.