04 June 2020
For the eleventh
quarter in a row, Western Australia continues to be the most affordable state
to live in, according to the latest Real Estate Institute of Australia’s Housing
Affordability Report.
REIWA President Damian
Collins said the findings of the report revealed affordability in WA’s housing
and rental markets was still at the best levels we have seen in many years.
“The March quarter was
an unusual one for the entire nation due to COVID-19, however it’s pleasing to
see that WA has remained the most affordable state, while seeing prices and
rents holding and not falling significantly, as was predicted by many early on,”
Mr Collins said.
Rental market
“According to the Housing
Affordability Report, the proportion of family income required for tenants
to pay their rent in WA was only 16.6 per cent in the March quarter 2020.
“This is significantly
below other states where it reached as high as 30.5 per cent. WA remains the
cheapest of all states and territories to rent a home.”
Sales market
For those looking to
buy their first home, the proportion of family income required to meet home
loan repayments was 25 per cent in the March quarter 2020.
“With interest rates
on home loans as low as 2.5 per cent, even taking out a $400,000 loan could
cost less than $200 per week, which is cheaper than renting in many cases.” Mr
Collins said.
Overall, affordability
improved across the nation as red-hot markets in Sydney and Melbourne cool,
although in New South Wales homeowners still pay an average of 42.5 per cent of
their family income on home loan repayments - significantly more than West Australians
do.
“While the dream of
home ownership remains a challenge on the East Coast, it’s very much alive and
well in WA, as our rents and home values are the most affordable of all the
states,” Mr Collins said.
More information
“If you are in a
financial position to get into a home of your own to rent or buy, there has
rarely been a better time, so make sure to reach out to your local REIWA agent for more information.”
Read the media release from REIA on the latest Housing Affordability Report which includes information on the other states and territories.