Housing affordability declines buts there’s good news for renters. The Real Estate Institute of Australia (REIA) has released its quarterly report into housing affordability in Australia and the new data shows worsening levels across the nation.
The Adelaide Bank Housing Affordability Report provides a comprehensive analysis of the property sector in Australia and examines long-term trends based on quarterly results, which ensures a better snapshot of the housing market.
Housing affordability declines buts there’s good news for renters. REIA CEO, Amanda Lynch says, “The latest comprehensive data shows a drop in housing affordability nationally with the proportion of income required to meet loan repayments increasing by 1.1 percentage points to 31.5%. Housing affordability is now at its lowest levels since the March quarter of 2013.”
“In every state and territory, housing affordability has worsened as a result of strong rises in property prices and only modest increases in income.”
“While the report shows some unsurprising results, with NSW once again the least affordable place to buy a home, Tasmania interestingly showed the greatest change. In the Apple Isle, the proportion of income required to meet loan repayments has risen1.5 percentage points, to 25.9%–the biggest worsening in housing affordability across the country.” Housing affordability declines buts there’s good news for renters.
“The figures for South Australia and Western Australia were 27.8% and 26.1% respectively.”
“This means that more of a home owner’s salary is going into meet the mortgage payments than in the previous year.”
“The Australian Capital Territory is still the most affordable state or territory. Housing affordability declines buts there’s good news for renters.
in which to buy a home with the figure sitting at 20.4% although many Canberrans probably don’t feel that this is the case.”
“However, in good news for renters, the latest quarterly data shows rental affordability improving with the proportion of income required to meet rent payments decreasing 0.2 percentage points to 24.8%.”
“Rental affordability is now at its best level since the June quarter of 2009.
The NT recorded the best improvement with the proportion going down by 1.3 percentage points while the figure dropped 0.1 percentage point in Victoria and Queensland,” concluded Ms Lynch.
Madeleine Hicks Real Estate team is available to call today on: 07 3355 6845.