WA retains its title as Australia’s most affordable state for housing and rentals
Western Australia has once again retained its title as the most affordable state in the country for housing and rentals.
The Real Estate Institute of Australia released its latest Housing Affordability Report for the June 2021 quarter earlier this month.
It found that although overall affordability declined marginally by 0.2 per cent in WA during the quarter, WA remains the most affordable state in the country.
In the owner-occupier market, only the Australian Capital Territory and the Northern Territory are more affordable than WA.
The report shows the proportion of family income required to meet average home loan repayments in WA was 26.5 per cent during the June 2021 quarter.
For comparison, the proportion of family income required to meet average home loan repayments in New South Wales during that same timeframe was 43.9 per cent, whilst in Victoria it was 35.6 per cent.
The affordability of the WA housing market in comparison to east coast markets like NSW was further exemplified by the average loan amount in each state. In WA, our average loan amount during the June quarter was $430,805, which is significantly lower than NSW’s average loan amount of $705,658.
First homebuyers remain strong drivers of the WA property market, with the Housing Affordability Report showing that WA has the largest proportion of first homebuyers in its owner-occupier market of any state or territory in the country at 44.2 per cent.
Interestingly, despite overall affordability declining slightly during the June 2021 quarter, the average amount of money first homebuyers needed to loan from the bank decreased by 0.5 per cent during the quarter and 3.7 per cent during the year to $368,028.
In the rental market, the report found that WA was still the most affordable place in the entire country to rent in and was the only place in the country that required less than 20 per cent of a family’s average income to make repayments.
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 buy and rent, and indeed is one of the most affordable places in the country.
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