Both renters and homeowners can expect to pay less here
Western Australia is the most affordable place in the country for renters and the most affordable state in which to buy a home, according to a new report from the Real Estate Institute of Australia.
REIA’s Housing Affordability Report determines affordability based on what proportion of the median weekly income is required to meet loan repayments or pay rent in a given state or territory. The report found that the proportion of family income required to service mortgage repayments in WA was 26.2%, overtaking the Australian Capital Territory. Only the Northern Territory was more affordable.
Damian Collins, president of the Real Estate Institute of Western Australia, said that despite strong market conditions in the state, WA was still very affordable for most home buyers.
“We have some of the most affordable housing in the country and the highest proportion of first-home buyers in our owner-occupier market of any place in the country at 39.3%, which is very encouraging,” Collins said. “While in other parts of the country the dream of homeownership is out of reach for many people – particularly in places like New South Wales, where close to half of the state’s median weekly family income is required to service loan repayments – that is simply not the case in WA.”
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The report found that the proportion of family income required to meet rent repayments was 19.7% – the most affordable in the country. WA edged out Victoria, which was tied with the state for affordability in the September quarter.
“Despite the rental shortage, WA tenants continue to enjoy the most affordable rental environment in the country,” Collins said. “This report highlights that rent prices are not the issue in WA – it’s supply. It is pleasing that despite strong competition for rentals, rent prices in WA are not growing at unsustainable levels.”
