The REIA Housing Affordability Report was released today and shows housing affordability has improved slightly across the country in the June quarter.
REIA president, Adrian Kelly said rental affordability was the real winner showing an improvement in both the June quarter and the past year.
“The proportion of income required to meet rent payments decreased to 23.3 per cent in the quarter, a decrease of 0.4 percentage points over the quarter and down 0.5 percentage points compared to the same time last year,” said Mr Kelly.
Source: REIA
“This can be mainly attributed to the reduction or stabilisation of rents during the June quarter with only the Australian Capital Territory having an increase in rents.
“Rental affordability has not been this high since December 2007, a positive for renters in these COVID times.”
At a Glance:
- Income required to meet rent payments decreased to 23.3 per cent in the quarter
- The average loan repayment decreased 0.6 percentage points through a drop in the average variable standard interest rate
- total number of new loans have declined compared both the March quarter of 2020 and the June quarter of the previous year
Mr Kelly also said the proportion of household income required to meet loan repayments decreased by 0.2 percentage points to 34.5 per cent over the quarter.
Source: REIA
“Even though the family income only increased 0.1 percentage point during the period, the average loan repayment decreased 0.6 percentage points through a drop in the average variable standard interest rate,” said Mr Kelly.
The report also shows the total number of new loans have declined compared both the March quarter of 2020 and the June quarter of the previous year.
“This is the lowest number of new loans issued in the past 5 years for all areas except New South Wales and the Australian Capital Territory and reflects the reduced activity in the housing market as a result of restrictions associated with COVID,” said Mr Kelly.
Source:REIA
State by state
NSW
- Proportion of income required to meet loan repayments decreasing to 42.3 per cent, a decrease of 0.2 percentage points over the quarter
- With the proportion of income required to meet loan repayments 7.8 percentage points higher than the nation’s average, New South Wales remained the least affordable state or territory in which to buy a home.
- Rental affordability stable with the proportion of income required to meet median rents remaining at 27.5 per cent over the quarter
- Number of loans to first home buyers increased to 6,801, an increase of 2.7 per cent over the quarter
Victoria
- Proportion of family income devoted to meeting average loan repayments decreasing to 36.8 per cent, a decrease of 0.7 percentage points over the quarter
- Rental affordability improved over the quarter with the proportion of income required to meet median rent decreasing to 22.5 per cent, a decrease of 0.5 percentage points both over the quarter and the previous year
- The number of loans to first home buyers in Victoria increased to 9,119, an increase of 5.7 per cent over the quarter
Queensland
- Proportion of income required to meet home loan repayments decreasing to 29.7 per cent, a decrease of 0.7 percentage points over the quarter
- Rental affordability improved with the proportion of family income required to meet median rent decreasing to 21.5 per cent, a decrease of 0.5 percentage points over the quarter
- The number of loans decreased to 14,342, a decrease of 9.9 per cent over the quarter and a decrease of 5.4 per cent compared to the June quarter of the previous year
South Australia
- Proportion of income required to meet monthly loan repayments decreasing to 27.6 per cent, a decrease of 0.3 percentage points over the quarter
- Rental affordability improved with the proportion of income required to meet rent payments decreasing to 21.5 per cent, a decrease of 1.0 percentage points over the quarter
- Number of loans to first home buyers in South Australia increased to 1,562, an increase of 4.6 per cent over the quarter
Western Australia
- Proportion of income required to meet loan repayments decreasing to 24 per cent, a decrease of 1.0 percentage points over the quarter
- Rental affordability improved with the proportion of family income required to meet the median rent decreasing to 16.1 per cent, a decrease of 0.5 percentage points over the quarter
- Total number of loans decreased to 6,855, a decrease of 11.4% over the quarter
Tasmania
- Proportion of income required to meet home loan repayments decreasing to 29 per cent, a decrease of 0.6 percentage points over the quarter
- Rental affordability improved with the proportion of income required to meet median rents decreasing to 28.5 per cent, a decrease of 2.0 percentage points over the quarter
- Total number of new loans for dwellings in Tasmania decreased to 1,575, a decrease of 9.1% over the quarter
Northern Territory
- Proportion of income required to meet loan repayments increased to 20.4 per cent in the June quarter
- Rental affordability improved with the proportion of income required to meet the median rent decreasing to 20.2 per cent, a decrease of 0.4 percentage points over the quarter
- Number of new loans in the Northern Territory increased to 469, an increase of 5.4 per cent over the quarter
Australian Capital Territory
- Proportion of income required to meet home loan repayments increasing to 22.3 per cent, an increase of 1.1 percentage points over the quarter
- Rental affordability declined with the proportion of income required to meet the median rent increasing to 19.2 per cent, an increase of 0.2 percentage points over the quarter
- Number of loans in the Australian Capital Territory increased to 2,051, an increase of 8.9% over the quarter
Similar to this:
Housing affordability improves while rental affordability declines: report
Quarterly housing report shows affordability improved
Housing affordability improves while rental affordability declines: report