Earlier this week, Smart Property Investment reported on new figures released by the Real Estate Institute of Australia (REIA), which showed that rental affordability improved in both the June quarter and when compared year-on-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,” REIA president Adrian Kelly said.
“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.”
Breaking down the numbers offers a glimpse into how each state and territory differs.
According to the research, here’s how each area is panning out for current and prospective renters, as well as buyers.
NSW
“Over the June quarter, housing affordability in New South Wales improved, with the proportion of income required to meet loan repayments decreasing to 42.3 per cent, a decrease of 0.2 percentage points over the quarter, but an increase of 2.4 percentage points compared with the corresponding quarter 2019,” the REIA said.
“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.
“Over the June quarter, rental affordability in New South Wales remained stable, with the proportion of income required to meet median rents remaining at 27.5 per cent over the quarter but decreasing 0.5 percentage points compared with the corresponding quarter 2019.”
Vic
“Over the June quarter, housing affordability improved in Victoria, with 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 but an increase of 2.0 percentage points when compared to the corresponding quarter in the previous year,” the REIA research found.
“Rental affordability in Victoria 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.”
Qld
“Housing affordability improved in Queensland over the June quarter, with the 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 and a decrease of 0.8 percentage points when compared to the June quarter 2019,” REIA said.
“Rental affordability in Queensland improved over the quarter, 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 and a decrease of 0.4 percentage points compared with the same quarter 2019.”
SA
“Over the June quarter, housing affordability in South Australia improved, with the 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 and a decrease of 0.3 percentage points compared to the June quarter 2019,” REIA said.
“Rental affordability in South Australia improved over the quarter, 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 and a decrease of 0.5 percentage points compared to the June quarter 2019.”
WA
“Over the June quarter, housing affordability in Western Australia improved, with the proportion of income required to meet loan repayments decreasing to 24.0 per cent, a decrease of 1.0 percentage points over the quarter and a decrease of 0.7 percentage points compared to the June quarter 2019,” REIA said.
“Rental affordability in Western Australia improved during the June quarter, 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 and a decrease of 0.3 percentage points compared to the year before.”
TAS
“Housing affordability in Tasmania improved over the June quarter, with the proportion of income required to meet home loan repayments decreasing to 29.0 per cent, a decrease of 0.6 percentage points over the quarter but an increase of 1.7 percentage points from the June quarter 2019,” REIA said.
“Rental affordability in Tasmania also improved over the quarter, 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 and a decrease of 1.4 percentage points compared with the June quarter 2019.”
NT
“Housing affordability in the Northern Territory declined, with the proportion of income required to meet loan repayments increasing to 20.4 per cent in the June quarter, an increase of 0.2 percentage points over the quarter but a decrease of 2.9 percentage points when compared to the June quarter 2019,” REIA said.
“Rental affordability in the Northern Territory improved over the quarter, 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 but remained stable compared to the June quarter 2019.”
ACT
“Housing affordability in the Australian Capital Territory declined over the June quarter, with the 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 and an increase of 0.1 percentage points compared to the corresponding quarter 2019,” REIA said.
“Rental affordability in the Australian Capital Territory declined over the June quarter, 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 and an increase of 0.3 percentage points compared to the June quarter 2019.”
State-by-state breakdown: Rental affordability
Originally sourced from: Property Investment News | Australia
Keywords: State-by-state breakdown: Rental affordability
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