HOUSING AFFORDABILITY DECLINES AS HOME LOAN REPAYMENTS SOAR

December 14th,2022

Housing affordability has declined over the September quarter 2022, with the proportion of income required to meet the average loan repayment increasing to 42.2%, an increase of 3.8 percentage points, the latest Real Estate Institute of Australia (REIA) Housing Affordability Report has found.

REIA President, Mr Hayden Groves said housing affordability declined in all states and territories, with Tasmania having the highest decline with the proportion of income increasing 5.9 percentage points and Western Australia having the lowest decline with the proportion of income increasing 3.2 percentage points.

“Rental affordability declined less than housing affordability with the proportion of income required to meet median rent increasing by 0.1 percentage points to 23.0%. Rental affordability improved in New South Wales and the Australian Capital Territory, remained stable in South Australia and Western Australia, but declined in all other states and territories,” he said.