- REIA's Housing Affordability Report has dubbed WA the cheapest state
- The state's affordability has, however, declined recently
- The portion of income required to cover the average home loan was 26.5%
Western Australia is still the most affordable state in the country for both housing and rentals, according to the Real Estate Institute of Australia (REIA)’s Housing Affordability Report.
The Housing Affordability Report determines the portion of family income required for the average home loan repayments.
In WA this portion was 26.5% in the June quarter this year, up from 25.4% in the March quarter. The figure is also up from the same quarter last year (25.4%).
Overall, Perth house prices are still not back to where they were in 2014 (see SQM Research chart below), and are about 40% of the price of properties in Sydney.
In terms of house buying, only the Northern Territory and the Australian Capital Territory is more affordable than Western Australia.
For rentals, WA is the most affordable across the states and territories. It is the only place that requires less than 20% of the average family income to cover rent.
Nationally, rental affordability improved in the June quarter.
As REIA President, Adrian Kelly explained, the portion of income required for rentals declined to 22.8%.
“Western Australia remained the most affordable place to rent, with the median income to rent ratio currently sitting at 19%,”
Adrian Kelly, REIA President
“Tasmania was the least affordable with 29.9% of median income required to meet rental commitments,” Mr Kelly said.