It's the only state in the country to see an improvement
Western Australia is the only state in the country where housing affordability has improved in the past two decades, according to a new report.
The report, released by the Real Estate Institute of Australia, looked at changes in affordability in each state and territory between 2000 and 2020. The report assessed affordability based on the proportion of the median weekly family income required to service loan repayments in the respective state or territory in 2000, 2005, 2010, 2015 and 2020.
During that time, West Australians paid less of their family income in home loan repayments in 2020, at 25.4%, than they did in 2000, when the proportion of income required was 25.6%.
In 2000, WA was the fourth-most expensive state in the country, behind New South Wales, Victoria and Queensland. By 2020, however, WA had become the most affordable state in the country, with only the Australian Capital Territory and the Northern GTerritory more affordable.
The report found that of the years covered, 2010 was the least affordable time in WA, with the proportion of income required to service a loan at 38.8% – 13.4% more expensive than in 2020.
The REIA report also found that WA fared well when it came to rentals. Rental affordability improved 1.5% between 2000 and 2020, with the proportion of income required to pay rent dropping from 18.4% at the beginning of the period to 16.9% at the end.
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2010 was also the least affordable time to rent in the state, with the proportion of income required to pay rent at 22.5% – 5.6% more expensive than in 2020.
“Although WA market conditions have strengthened over the last two years, it’s pleasing that our property market remains accessible for most people,” the Real Estate Institute of Western Australia said. “With interest rates having risen recently, WA’s prevailing affordable housing environment puts West Australians in a good position to manage the cost of servicing a loan.”
