The following is as I understand it, but I’m no expert. In Australia where house prices are at very high levels, a lot of that price is driven by the availabil

The following is as I understand it, but I’m no expert. In Australia where house prices are at very high levels, a lot of that price is driven by the availability of cheap loans. Lower interest rates have increased the ability of people to service larger loans, so we Australians have borrowed and paid more for a home. Presumably an increase in inflation reduces how much money people can affordably borrow, and therefore also directly slows or even reverses real estate growth. Conversely, if wages also increase in an inflationary era, that increases affordability of loans. Overall, I have no idea what real estate would do with inflation and wage growth, but in the absence of wage growth I’d guess real estate values would plummet, at least in Australia.