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Property becoming more affordable, yes, really
Housing affordability has improved in all states and territories, according to the surprising findings of a new report.
The Housing Affordability Report, which is produced each quarter by the Real Estate Institute of Australia, found that property became relatively easier to afford between the March quarter in 2016 and the March quarter in 2017.
This finding was based on comparing the median family income with the median home loan in each state and territory.
Proportion of family income needed to meet loan repayments
| Region | March quarter 2016 | March quarter 2017 |
|---|---|---|
| New South Wales | 37.4% | 36.1% |
| Victoria | 34.6% | 32.5% |
| Queensland | 27.7% | 26.7% |
| Western Australia | 24.5% | 23.4% |
| South Australia | 27.4% | 26.2% |
| Tasmania | 24.3% | 23.6% |
| ACT | 20.5% | 20.1% |
| Northern Territory | 23.2% | 21.1% |
| Australia | 31.7% | 30.4% |
The report also found that renting became more affordable throughout Australia, except for Tasmania and the ACT.
This was based on comparing median family incomes with median rents for three-bedroom houses.
Proportion of family income needed to meet rent repayments
| Region | March quarter 2016 | March quarter 2017 |
|---|---|---|
| New South Wales | 29.0% | 28.4% |
| Victoria | 23.9% | 23.8% |
| Queensland | 23.9% | 23.7% |
| Western Australia | 20.2% | 18.6% |
| South Australia | 22.9% | 22.0% |
| Tasmania | 25.9% | 26.6% |
| ACT | 17.4% | 17.9% |
| Northern Territory | 26.2% | 23.7% |
| Australia | 25.1% | 24.6% |
Housing gets budget boost
This new report from the Real Estate Institute of Australia comes just one month after the federal government made housing affordability a key theme of its annual budget.
A report from Master Builders Australia concluded that the budget’s affordability measures would boost Australia’s housing supply by 41 per cent over the next four years.
Disclaimer
This article is over two years old, last updated on June 13, 2017. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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