REIA Housing Affordability Report calculates affordability by determining what percentage of median weekly family income is needed to repay loans and pay rent in each state or territory.
Although the state gained 0.3% of home values in February, the report found that it only takes 26.2% of family income to pay off home loans in Western Australia, making Second most affordable state in the country next to the Northern Territory.
Commenting on making home ownership accessible to buyers, Real Estate Institute of Western Australia (REIWA) Chairman Damian Collins said: “While in other parts of the country the dream of home ownership Homeownership is out of reach for many people, especially in places like New South Wales, where nearly half of the state’s median weekly family income is needed to pay off loans, it’s not just isn’t the case in WA.
In the fourth quarter of 2021, REIA reported a decline in housing affordability, showing it takes up to 37%, on average, family income to meet loan repayments.
REIA Chairman Hayden Groves warned that with expected interest rate hikes, affordability could deteriorate further.
In stark contrastMr Collins touted Western Australia’s affordability, saying: ‘We have some of the most affordable housing in the country and the highest proportion of first-time home buyers in our homeownership market of all places in the country at 39.3%, which is very encouraging.”
Additionally, the proportion of family income needed to cover rent payments was 19.7%, the report said, making it the most affordable state for renters in the country, a title it shared with Victoria. during the September quarter.
Despite strong demand for rentals, Mr Collins boasted of tenants enjoying ‘the most affordable rental environment in the country’ – an indication that ‘rent prices aren’t the problem in WA, it’s l ‘offer”.
Overall, Mr Collins pointed to Western Australia’s sustainable growth, evidenced by its good reputation for affordable housing.