WA houses most affordable of Australia’s big five states
Of the country’s five biggest states, Western Australia is the most affordable region to buy a house, according to the Real Estate Institute of Australia (REIA).
The findings are part of a housing affordability report which compared the proportion of family income needed to meet home loan repayments.
Of the big five largest states in Australia, including New South Wales, Victoria, Queensland, South Australia, Western Australia had the lowest proportion of family income needed to meet loan repayments at 26.2%.
This was followed by South Australia (27.8%), Queensland (28.4%), Victoria (33.4%) and New South Wales (36.2%).
The report, which was commissioned by REIA and Adelaide Bank, highlighted that there were a range of factors that influence housing affordability from state-to-state.
These include the size of a home loan and family income, interest rates, the borrower’s equity situation and the price of the property.
Not surprisingly, Australia’s two smaller economies claimed first and second position overall, when taking into account all eight states and territories in the country.
The Australian Capital Territory is the most affordable region to purchase a home with the proportion of family income needed to meet loan repayments at just 20.4%, while Tasmania sits second at 25.9%.
The report also found that housing affordability had deteriorated in every state and territory over the past year.
However, Western Australians were the least affected with just a 0.1% increase in the proportion of income needed to meet loan repayments in that time.
The report also ranked the states in order of median weekly family incomes.
The Australian Capital Territory had the highest median weekly family income at $2,508, followed by Northern Territory ($1,915), Western Australia in third ($1,911) and New South Wales in fourth ($1,598).
The bottom four regions were Queensland in fifth position ($1,588), Victoria ($1,546), South Australia ($1,462) and Tasmania had the lowest median weekly family income ($1,295).