ACT leads nation in housing affordability, report finds
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The Australian Capital Territory remains one of the most affordable regions in Australia for both homeowners and renters, according to the latest Housing Affordability Report from the Real Estate Institute of Australia (REIA).
Despite national housing affordability reaching its lowest level since monitoring began in 1996, the ACT continues to outperform other states and territories.
In the ACT, only 33.3% of a median family’s income is needed to meet average home loan repayments, significantly lower than New South Wales (57.9%), South Australia (46.0%), and Queensland (46.8%).
The territory also leads in rental affordability, with rent payments consuming just 19.1% of the median family income, compared to 27.7% in New South Wales and 25.9% in Tasmania.
Real Estate Institute of the ACT (REIACT) CEO Maria Edwards said the figures demonstrate the ACT’s attractiveness for those seeking more affordable living options.
“The ACT remains a prime choice for Australians looking for more affordable living options. With relatively lower home loan repayments and rental costs compared to income, we continue to be an accessible and attractive destination for both homeowners and renters,” Ms Edwards said.
The ACT was one of few jurisdictions to show improvements in housing affordability over the June quarter. The proportion of family income needed for loan repayments decreased by 1.0 percentage points over the quarter and 1.2 percentage points over the year.
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First home buyers are increasingly turning to the ACT, with the number of loans to this group rising by 12.6% in the June quarter, the largest increase among all states and territories.
However, Ms Edwards cautioned that sustained efforts are needed to maintain housing affordability.
“We must remain vigilant in maintaining an adequate supply of new homes to sustain this affordability for the long term,” she said.
The REIACT acknowledged that the report is based on median family incomes and does not reflect difficulties faced by lower-income earners requiring social or affordable housing.
The organisation also stressed the importance of encouraging investors to return to the market to support housing supply and affordability.