This generational change in house price to income ratios is also apparent in Britain and supply constrained US cities. It can be largely explained by the fall in mortgage interest rates from the 12-15% in the 80's to the 3-5% we see in the 2010's.

This windfall provided a massive generational wealth transfer from young to old, and with interest rates near the zero lower bound cannot be replicated. This makes housing a far worse bet for our generation, even for those of us earning sufficiently more than our parents to be able to take a shot at home ownership.