Rent affordability improved slightly in Australia by 0.3 percentage points from the June quarter, according to the Real Estate Institute of Australia (REIA).
REIA President Adrian Kelly explained that the proportion of income required for rent across the country has declined to 22.8%.
“During the quarter, rent affordability improved in New South Wales, Victoria, Queensland and South Australia and stabilized in Tasmania and the Australian Capital Territory,” said Mr Kelly said.
“Western Australia remained the most affordable rental location with a median income-to-rent ratio of 19%, while Tasmania was the least affordable with 29.9% of the median income required to meet rental commitments. “
Mr Kelly said that despite media headlines on the availability and cost of private rentals, the affordability of rent relative to median income overall remains constant and this should be reflected in state housing policies. and the federal government.
According to Kelly, home sales continued to post premiums during the quarter, which was reflected in affordability.
“The weighted average price of homes in the capital rose to $ 913,946 and the average loan amount increased 8.3%,” he said.
“The income required to repay loans rose to 35.4% or 2.1 percentage points and increased 1.9 percentage points from the same quarter of 2020.”
Housing affordability improved during the June quarter in Tasmania and the Northern Territory, but declined in all other states and the Australian Capital Territory.
New South Wales had the largest increase in home loans at 11.1%, up $ 70,311 from last quarter.
“With sustained low interest rate environments, there are still opportunities where it is cheaper to rent than to buy. As we enter the spring sales season, half of Australians are living in lockdown conditions and Australia narrowly missed a technical recession, ”Kelly said.