New housing loan values soar as prices rise and rental stock declines

The value of new housing loans has increased significantly due to a surge in house prices and a decline in rental stock, according to the latest data from the Australian Bureau of Statistics (ABS).

Real Estate Institute of Australia (REIA) President Leanne Pilkington said the data shows home buyers and investors are paying more to purchase residential property or, alternatively, more buyers are joining forces to secure their future.

“We’re witnessing an increase in rentvesting, particularly in regional areas, where individuals choose to rent a property to reside in while simultaneously investing in real estate elsewhere, reflecting changing preferences and economic dynamics in the housing market,” Pilkington said.

“As housing affordability continues to pose challenges, the data does not fully reflect the market dynamics.”

The ABS data revealed the value of new housing loans rose 17.9 per cent since March 2023 to $27.6 billion, following a 3.1 per cent rise in the month.

The value of investor loans increased 3.8 per cent in March to $10.2 billion, a 31.1 percent rise since March 2023.

Owner-occupier loans (excluding first home buyers) rose 2.1 per cent to $12.3 billion, an 8.8 per cent increase through the year, while first home buyer loans rose 4.4 per cent to $5.2 billion, a 17.9 per cent rise through the year.

REIA, established in 1924, is a federated body of State & Territory Real Estate Institutes representing 85% of Australian real estate agencies.