The latest Real Estate Institute of Australia (REIA) report from the June quarter reveals bleak times for ACT rental affordability, while much of the rest of Australia is slowly starting to improve.
Across the country, rental affordability improved on an average of 0.3 per cent while the proportion of income required to pay rent decreased to 22.8 per cent.
REIA president Adrian Kelly said rental affordability has improved across NSW, Victoria, Queensland, and SA, yet only stabilised in the ACT and Tasmania.
Mr Kelly saw house sales continue to record premiums over the quarter as the national capital city median house price increased to $913,946, and average housing loan size increased by 8.3 per cent.
“Housing affordability improved over the June quarter in Tasmania and the NT but declined in all other states, with the ACT with NSW having the largest increase in home loans [size] at 11.1 per cent, $70,311 higher than last quarter,” he said.
“With sustained low interest rate environments, there are still opportunities where it is cheaper to rent than buy.
“As we enter spring selling season, half of Australians are living under lockdown conditions and Australia has only just narrowly missed a technical recession.”
According to Mr Kelly, WA has retained the title of the most affordable jurisdiction in Australia to rent with a 19.0 per cent median income to rent ratio, while Tasmania is the least affordable with a median income requirement of 29.9 per cent to meet rental commitments.
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