- WA established as most affordable for tenants and owner occupiers
- This is despite 14% house price growth in Perth this year
- Calculations from REIA take into account median weekly family income
Perth has seen 14% growth in housing prices this year with the increases expected to continue throughout 2022. Despite this rise, Western Australia has held its standing as the most affordable state according to the Real Estate Institute of Australia (REIA)’s latest Housing Affordability Report.
The report released this month takes into consideration the median family income required in each state or territory to service mortgages or pay rent.
WA stood out from the crowd in the report.
REIA President Adrian Kelly explained that housing affordability showed a worsening situation.
“While housing affordability declined across many states over the September Quater, it has improved in Western Australia and the Australian Capital Territory.”
Adrian Kelly, REIA President
During the third quarter, WA was the only state not to report a deterioration in housing affordability.
Home owner affordability
The proportion of family income required to service the average loan repayments was reduced by 0.1% to 26.3%, securing WA’s standing as the most affordable state.
Granted the Australian Capital Territory which saw a 0.1% improvement and the Northern Territory which saw no change were more affordable.
On the other end of the scale, New South Wales can be considered the least affordable state with households requiring 44.7% of the family income to service loan repayments.
On the rental side
WA shares the podium with Victoria in terms of rental affordability. This is despite a 0.2% decline in affordability in WA.
Tenants in both states require 19.8% of the average income to pay their rent.
To give that figure some context, Tasmanian tenants can expect 29.7% of their income to go towards their rental.
Housing and rental affordability
First home buyers
Affordability for first home buyers in WA saw an improvement from the June to the September quarter. The report revealed that the average home loan taken out by first home buyers reduced 0.6% to reach $365,815.
