Western Australia has retained the title of most affordableplace in the country for renting and is the most affordable state in thecountry for housing, according to a new report by the Real EstateInstitute of Australia (REIA).
REIAs Housing Affordability Report determines affordabilitybased on what proportion of the median weekly family income is required toservice loan repayments and pay rent in the respective state or territory.
WA is most affordable state to buy in
It found the proportion of family income required to servicehome loan repayments in WA was 26.2 per cent making WA now the second mostaffordable place in the country, overtaking the Australian Capital Territorywith only the Northern Territory more affordable.
REIWA President Damian Collins said it was pleasing thatdespite strong market conditions prevailing across the state, WA was still veryaffordable for most people.
We have some of the most affordable housing in the countryand the highest proportion of first home buyers in our owner-occupier market ofany place in the country at 39.3 per cent, which is very encouraging.
While in other parts of the country the dream of homeownership is out of reach for many people, particularly in places like NewSouth Wales where close to half of the states median weekly family income isrequired to service loan repayments, that is simply not the case in WA, MrCollins said.
WA is the most affordable place in Australia to rent
In the rental market, the Housing Affordability Report foundthat the proportion of family income required to make rent repayments in WA was19.7 per cent, the most affordable in the country edging out Victoria whichjointly held the title with WA in the September 2021 quarter.
Despite the rental shortage, WA tenants continue to enjoythe most affordable rental environment in the country. This report highlightsthat rent prices are not the issue in WA, its supply, Mr Collins said.
It is pleasing that despite strong competition for rentals,rent prices in WA are not growing at unsustainable levels.
How WA compares to the rest of the country
