WA still the most affordable state for housing and rentals
Despite strong market conditions, Western Australia is still the most affordable state for housing and rentals, according to the Real Estate Institute of Australia’s (REIA) latest Housing Affordability Report.
The report found that the proportion of family income needed to meet loan repayments in WA during the March 2021 quarter was 24.8 per cent, while the proportion of family income needed to meet rent payments was 18.7 per cent.
REIWA President Damian Collins said rental affordability in WA was the best of any state or territory in the country. Housing purchase affordability was also amongst the best, with only the Northern Territory and Australian Capital Territory more affordable than WA.
“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.
“To put the WA figures into perspective, in New South Wales, the proportion of income needed to meet repayments for housing was 43.5 per cent during the March quarter, while the proportion of income needed to meet rent payments was 28.6 per cent.
“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.
“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.
“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,” Mr Collins said.