Western Australia has been declared the most affordable state for buyers and tenants for the 11th consecutive quarter.
According to the Real Estate Institute of Australia’s (REIA) latest Housing Affordability Report, the west coast state has retained its title as the most affordable.
Commenting on the stats, REIWA president Damian Collins said the findings of the report revealed that 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.
“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.”
Mr Collins noted that 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 home owners still pay an average of 42.5 per cent of their family income on home loan repayments – significantly more than Western 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.
“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.”