Housing affordability declines but renters win
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Housing affordability declines but renters win
Posted on Wednesday, March 04 2015 at 4:36 PM
The Real Estate Institute of Australia (REIA) has released its quarterly Adelaide Bank Housing Affordability Report and it reveals Australian property is becoming less affordable.
Amanda
Lynch, CEO of the REIA, says the proportion of income required to meet loan repayments
has increased by 1.1 per cent to reach 31.5 per cent across the nation.
“Housing
affordability is now at its lowest levels since the March quarter of 2013,”
Lynch says.
“In
every state and territory, housing affordability has worsened as a result of
strong rises in property prices and only modest increases in income.”
New
South Wales retained its position as the least affordable state, while South
Australia and Western Australia recording 27.8 per cent and 26.1 per cent
respectively.
The
dark horse is Tasmania where the proportion of income required to meet loan
repayments has risen 1.5 per cent to 25.9 per cent – the biggest increase
across the country.
“The
Australian Capital Territory is still the most affordable state or territory in
which to buy a home with the figure sitting at 20.4 per cent, although many
Canberrans probably don’t feel that this is the case,” Lynch says.
There
is good news for tenants though with the proportion of income required to meet
rent payments decreasing 0.2 per cent to 24.8 per cent.
“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,” Lynch says.
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