New data from the Real Estate Institute of Australia has revealed an improvement in rental affordability for the June quarter, while housing affordability declined in all states except Western Australia.

The June quarter 2019 edition of the REIA Housing Affordability Report found the proportion of income required to meet rent payments decreased to 23.8 per cent, a fall of 1.2 percentage points over the quarter and a decrease of 0.3 percentage points compared to the same quarter 2018. 

At the same time, housing affordability declined marginally across the country. 

REIA President Adrian Kelly said the trend was due to the rise in the average loan amounts after the lower levels of the March quarter, which appeared to be an annual pattern.

"With the exception of Western Australia, housing affordability declined in all states and territories," he said.

49-51-queen-victoria-street-fremantle-e86e3a4f-5f3c-485b-8f4e-0bd2777faba2_1.jpg

 49/51 Queen Victoria Street, Fremantle. As seen on Luxury List

"Although average loan amounts increased in all states and territories between 0.2 per cent and 6.2 per cent only Western Australia’s family income surpassed their increase in the loan amount.” 

Mr Kelly said the total number of loans increased over the June quarter by 6.6 per cent. 

“The number of loans to owner occupier first home buyers has recorded increases in five of the six months of 2019. However, compared to the previous twelve months there was 16,521 less new housing loans - a decrease of 15.1 per cent. 

“This upward trend in first home buyer loans is expected to continue as over the past few years there has been an increase in the final quarter of the year.” 

Click here to find out how to download the report.

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