WA remains a winner when it comes to affordability
The latest Real Estate Institute of Australia’s (REIA) Housing Affordability Report has revealed that Western Australia is the most affordable state for renters and the second-most affordable for home buyers.
REIA’s Housing Affordability Report calculates affordability by determining what percentage of the median weekly family income is required to service loan repayments and pay rent in each state or territory.
Despite the state having gained 0.3 per cent in home values over February, the report discovered that it takes just 26.2 per cent of the family income to service home loan repayments in Western Australia, making the state the second-most affordable in the country next to the Northern Territory.
Commenting on making home ownership accessible to buyers, Real Estate Institute of Western Australia (REIWA) president Damian Collins said: “While in other parts of the country, the dream of home ownership is out of reach for many people, particularly in places like New South Wales where close to half of the state’s median weekly family income is required to service loan repayments, that is simply not the case in WA.”
In Q4 of 2021, REIA reported a drop in housing affordability, showing that it takes up to 37 per cent, on average, of the family income to meet loan repayments.
REIA president Hayden Groves has warned that with the anticipated interest rate hikes, affordability might deteriorate even further.
In stark contrast, Mr Collins touted Western Australia’s affordability, saying: “We have some of the most affordable housing in the country and the highest proportion of first home buyers in our owner-occupier market of any place in the country at 39.3 per cent, which is very encouraging.”
Moreover, the proportion of family income required to cover rent payments was 19.7 per cent, according to the report, making it the most affordable state for tenants in the country, a title it shared with Victoria back in the September quarter.
Despite a strong demand for rentals, Mr Collins boasted of tenants enjoying “the most affordable rental environment in the country” – an indication that “rent prices are not the issue in WA, it’s supply”.
All in all, Mr Collins highlighted Western Australia’s sustainable growth evidenced by its good standing when it comes to affordable housing.
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