New research has found that rental affordability saw vast improvement over the June quarter, with the lowest proportion of income required to meet payments since 2008.
According to REIA’s latest Housing Affordability Report, the proportion of income required to meet rent payments decreased to 23.8 per cent in the June 2019 quarter.
This represents a fall of 1.2 percentage points and a decrease of 0.3 percentage points compared to the same quarter in 2018.
Commenting on the results, REIA president Adrian Kelly said the decline was evident in the bulk of Australian states and territories.
“This is due to the rise in the average loan amounts after the lower levels of the March quarter – which appears to be an annual pattern,” Mr Kelly said.
“With the exception of Western Australia, housing affordability declined in all states and territories. Although average loan amounts increased in all states and territories between 0.2 per cent and 6.2 per cent, only Western Australia’s family income surpassed their increase in the loan amount.”
Further, Mr Kelly said the total number of loans increased over the June quarter by 6.6 per cent.
“The number of loans to owner-occupier first home buyers has recorded increases in five of the six months of 2019. However, compared to the previous 12 months, there was 16,521 less new housing loans – a decrease of 15.1 per cent,” he said.
“This upward trend in first home buyer loans is expected to continue, as over the past few years, there has been an increase in the final quarter of the year.”