Housing affordability declined slightly in WA in the June 2025 quarter.
According to the latest Real Estate Institute of Australia (REIA) Housing Affordability Report, the proportion of family income needed to meet loan repayments in WA increased 0.4 percentage points over the June 2025 quarter to 41.2 per cent.
REIWA President Suzanne Brown said the decline in affordability was a result of strong price growth.
"As prices rise, people have to borrow more to buy a home and a greater proportion of family income is required to make mortgage repayments," she said.
"While interest rates were cut 0.25 percentage points in May, this wasn't enough to offset the increase in average mortgage repayments, and affordability has declined as a result.
"Demand for property remains very strong, which is maintaining upward pressure on prices, and under current conditions we can expect affordability to decline further over 2025."
Housing affordability in WA declined over the year, with the proportion of income needed to meet loan repayments increasing 1.6 percentage points from the June 2024 quarter.
Housing affordability improved in all other states and territories in the June quarter.
Despite the decline in affordability, WA retained its title of Australia's most affordable state, with only the two territories being more affordable.
New South Wales was the least affordable state, where home owners required 56.4 per cent of family income to meet loan repayments, an improvement of 0.4 percentage points on the March quarter.
Proportion of median family income to meet average loan repayments
| Jun Qtr 2025 | Mar Qtr 2025 | Jun Qtr 2024 | |
| NSW | 56.4% | 56.8% | 58.1% |
| VIC | 44.5% | 45.2% | 45.8% |
| QLD | 48.3% | 48.4% | 46.9% |
| SA | 46.6% | 47.9% | 46.1% |
| WA | 41.2% | 40.8% | 39.6% |
| TAS | 41.5% | 43.3% | 43.1% |
| NT | 33.4% | 34.8% | 33.2% |
| ACT | 33.3% | 33.5% | 35.4% |
| AUS | 47.7% | 48.0% | 48.2% |
Source: Real Estate Institute of Australia (REIA).
Loan activity
There were 10,401 new loans to owner occupiers in WA during the June 2025 quarter. This was 8.2 per cent higher than the March quarter but 3.9 per cent lower than the June 2024 quarter.
The average loan size for owner occupiers was $620,123, which was an increase of 4.4 per cent over the quarter and 13.1 per cent over the year.
First home buyers made up 35.1 per cent of owner occupier loans. There were 3,647 loans to first home buyers in the June quarter, a 6.3 per cent increase on the March quarter but 11.8 per cent lower than 12 months ago.
The average loan size to first home buyers increased 3.8 per cent over the quarter and 10.8 per cent over the year to $526,652.
Ms Brown said first home buyer activity was likely to increase again in the September and December quarters with the Reserve Bank cutting interest rates in August and the Federal Government fast-tracking its changes to the Home Guarantee Scheme from January 2026 to 1 October 2025.
"The Government has removed the income limits for the scheme, increased price caps and removed the limit on the number of places available," she said.
"This will make the program accessible to more first home buyers and we expect to see first home buyer activity increase as a result."
Rental affordability
Rental affordability declined marginally in the June 2025 quarter.
The proportion of family income required to meet rent repayments increased by 0.1 percentage points to 24.1 per cent. This was an increase of 0.5 percentage points compared to the same time last year.
Ms Brown said rent price growth had slowed, which meant the decline in affordability was minimal.
"After years of very strong growth, rent price growth is slowing," she said.
"We're seeing rent prices show periods of stability and there have even been some declines from month to month.
"More rent price growth is likely over the remainder of 2025, but the impact on affordability should be small."
Nationally, rental affordability improved over the June quarter in New South Wales, Victoria, Queensland, Tasmania, and the ACT. It declined in South Australia and the Northern Territory.
New South Wales remained the least affordable state for tenants, with 27.5 per cent of family income needed to meet rent repayments. The ACT was the most affordable at 18.7 per cent.
Proportion of family income required to meet rent repayments
| Jun Qtr 2025 | Mar Qtr 2024 | Jun Qtr 2024 | |
| NSW | 27.5% | 27.6% | 27.7% |
| VIC | 21.0% | 21.3% | 21.9% |
| QLD | 23.3% | 23.5% | 23.0% |
| SA | 25.7% | 25.4% | 25.0% |
| WA | 24.1% | 24.0% | 23.6% |
| TAS | 26.5% | 26.8% | 25.9% |
| NT | 25.3% | 24.5% | 25.0% |
| ACT | 18.7% | 18.9% | 19.1% |
| AUS | 24.4% | 24.5% | 24.6% |
Source: Real Estate Institute of Australia (REIA).
