For the eleventhquarter in a row, Western Australia continues to be the most affordable stateto live in, according to the latest Real Estate Institute of Australias HousingAffordability Report.
REIWA President DamianCollins said the findings of the report revealed affordability in WAs housingand rental markets was still at the best levels we have seen in many years.
The March quarter wasan unusual one for the entire nation due to COVID-19, however its pleasing tosee that WA has remained the most affordable state, while seeing prices andrents holding and not falling significantly, as was predicted by many early on,Mr Collins said.
Rental market
According to the HousingAffordability Report, the proportion of family income required for tenantsto pay their rent in WA was only 16.6 per cent in the March quarter 2020.
This is significantlybelow other states where it reached as high as 30.5 per cent. WA remains thecheapest of all states and territories to rent a home.
Sales market
For those looking tobuy their first home, the proportion of family income required to meet homeloan repayments was 25 per cent in the March quarter 2020.
With interest rateson home loans as low as 2.5 per cent, even taking out a $400,000 loan couldcost less than $200 per week, which is cheaper than renting in many cases. MrCollins said.
Overall, affordabilityimproved across the nation as red-hot markets in Sydney and Melbourne cool,although in New South Wales homeowners still pay an average of 42.5 per cent oftheir family income on home loan repayments – significantly more than West Australiansdo.
While the dream ofhome ownership remains a challenge on the East Coast, its very much alive andwell in WA, as our rents and home values are the most affordable of all thestates, Mr Collins said.
