Western Australia has retained the title of most affordable place in the country for renting and is the most affordable state in the country for housing, according to a new report by the Real Estate Institute of Australia (REIA).
REIA’s Housing Affordability Report determines affordability based on what proportion of the median weekly family income is required to service loan repayments and pay rent in the respective state or territory.
WA is most affordable state to buy in
It found the proportion of family income required to service home loan repayments in WA was 26.2 per cent – making WA now the second most affordable place in the country, overtaking the Australian Capital Territory with only the Northern Territory more affordable.
REIWA President Damian Collins said it was pleasing that despite strong market conditions prevailing across the state, WA was still very affordable for most people.
“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 per cent, which is very encouraging.
“While in other parts of the country the dream of home ownership 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,” Mr Collins said.
WA is the most affordable place in Australia to rent
In the rental market, the Housing Affordability Report found that the proportion of family income required to make rent repayments in WA was 19.7 per cent, the most affordable in the country – edging out Victoria which jointly held the title with WA in the September 2021 quarter.
“Despite the rental shortage, WA tenants continue to enjoy the most affordable rental environment in the country. This report highlights that rent prices are not the issue in WA, it’s supply,” Mr Collins said.
“It is pleasing that despite strong competition for rentals, rent prices in WA are not growing at unsustainable levels.”