WA tops affordability test

Western Australia is the most affordable place in the country for renters, according to the Real Estate Institute of Australia’s latest report.

The Housing Affordability Report shows that the proportion of family income needed to meet rent payments in WA during the 2021 March quarter was 18.7 per cent – the most affordable in the country.

The Australian Capital Territory was the second most affordable for renters, with rents comprising 20 per cent of income, then Queensland (22.5 per cent) and Victoria (22.6 per cent).

Tasmania was the least affordable place to rent, consuming 30.6 per cent of income, followed by New South Wales (28.6 per cent) .

WA was also one of the most affordable states in the country for housing affordability: the proportion of family income needed to meet loan repayments in WA during the March 2021 quarter was 24.8 per cent.

That was only slightly less affordable than the Northern Territory and ACT, with every other major capital city requiring a larger percentage of income.

NSW was the least affordable for those with mortgages, accounting for 43.5 per cent of family income, followed by Victoria (37.3 per cent).

Source: The Housing Affordability Report. 

Real Estate Institute of WA president Damian Collins said despite the WA property market being firmly in a recovery phase, WA buyers and tenants still enjoyed the most affordable prices of any other state in the country.

“… despite the buoyant market conditions, WA buyers and tenants remain in a favourable position when it comes to affordability,” Mr Collins said.

“The findings of this report are further evidence that the biggest issue facing WA right now is not affordability – but the shortage of available properties to buy and rent.

“Thankfully, with listings for sale up 14.9 per cent during the last three months and listings for rent up 7.4 per cent during that same time frame, we are starting to see some light at the end of the tunnel. 

“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 live.”