Western Australia is once again the most affordable state in Australia for housing and rentals, according to the Real Estate Institute of AustraliasHousing Affordability Report.
Residential salesmarket
Although overallaffordabilitydeclined in WA during the June 2021 quarter,WAremainsthemost affordable statein the country for housing, with only the Australian Capital Territory and Northern Territorymore affordable.
TheHousing Affordability Reportshows the proportion of family incomerequiredto meet average home loan repayments in WA was26.5 per cent in the June 2021 quarter, up from 26.3 in the March 2021 quarter and 25.4 in the June 2020 quarter.
There were 14,069 loans taken out in the June 2021 quarter in WA, which is a 106 per cent increase onthe June 2020 quarter.
The average loan amountin WA during the quarter was$430,805. The average loan amount increased2.9 per centin WAduring thequarter, whichis significantly lower than other states like New South Wales andVictoriawhere the average loan amounts were $705,658 and$568,188respectively.
First home buyers
First home buyers made up 44.2 per cent of the states owner-occupier market during the June 2021 quarter, which is the highest percentage of any state of territory in the country.
The number of loans toWAfirst home buyersdeclined slightly in the June quarterto 6,221, which is 94.6 per cent more than in the June 2020 quarter.
The average loan amountfor first home buyersdecreased 0.5 over the quarter and 3.7 per cent over the year to $368,028.
Rental market
WA is the most affordable place in the entire country to rent inand is the only place in the country that requires less than 20 per cent of a familys average income to make repayments.
The June 2021 quarterHousing Affordability Reportshows that the proportion of incomerequiredto meet median rent prices was 19.6 per cent, which is up slightly on the March 2021 quarter.
How the states and territories compare
The below graphiccompareshousing affordability ineach state and territoriesowner-occupier and rental markets.
