The debate is well and truly on over whether Australian housing is getting bubbly. The media sees its job as to create a conflict so those trying to form a view from reading general commentary could be left thinking that everyone is either a full bubble proponent (see LF Economics, Roger Montgomery or Zero Hedge) or of the balanced market view (see your local real estate agent or property developer). Out of all this I found two graphs very helpful – one that aligns with either side of the debate. Both graphs go back to basic demand and supply mechanics.