- 24.8% of family income in WA is enough to meet loan repayments
- This rate drops to 18.7% for rent
- REIWA President argues the issue is the shortage of properties, not the cost
The Real Estate Institute of Australia’s (REIA) Housing Affordability Report has revealed that despite the strong market conditions, Western Australia is the most affordable place in the country for renting and the most affordable state for purchasing.
During the March 2021 quarter, it found that 24.8% of family income was needed to meet loan repayments, with this rate decreasing to 18.7% for rent.
Damian Collins, REIWA President, said along with being the most affordable state to rent, it is the most affordable state to purchase property; the two mainland territories; the Northern Territory and the Australian Capital Territory, are the only other places in Australia where it is cheaper to purchase a property based on income.
“Despite the WA property market being firmly in a recovery phase, WA buyers and tenants enjoy the most affordable prices of any other state in the country,” said Mr Collins.
“The findings of this report are further evidence that the biggest issue facing WA right now is not affordability – but the shortage of available properties to buy and rent.
“Thankfully, with listings for sale up 14.9 per cent during the last three months and listings for rent up 7.4 per cent during that same time frame, we are starting to see some light at the end of the tunnel.”
Damian Collins, REIWA
By comparison, the proportion of income required in New South Wales to meet repayments was 43.5% during March 2021 quarter, with the proportion for rent being 28.6%.
“That is significantly more than WA and highlights that despite the buoyant market conditions, WA buyers and tenants remain in a favourable position when it comes to affordability,” added Mr Collins.
“While there is no question that for some people in WA access to affordable housing is still out of reach, it is pleasing that for most people, WA remains a very affordable place to live.”
