Housing affordability across the country improved marginally in the March 2019 quarter, while rental affordability continues to decline, according to research from the Real Estate Institute of Australia (REIA) and Adelaide Bank.
REIA President Adrian Kelly said the Adelaide Bank/REIA Housing Affordability Report found NSW has the largest improvement in housing affordability.
“While rental affordability improved marginally in the larger states of NSW, Victoria and Queensland as well as in WA and the NT, a large decline in rental affordability in South Australia and Tasmania offset this improvement resulting in an overall decline in rental affordability nationally,” he said.
According to the report, housing affordability in the ACT improved, with the proportion of income required to meet loan repayments decreasing 0.3 percentage points to 20.3% over the quarter.
However, rental affordability in the ACT declined over the quarter, with the proportion of income required to meet the median rent rising to 19%, an increase of 0.1 percentage points over the quarter, and 0.5% over the past year.
Mr Kelly noted the Reserve Bank of Australia’s decision last week to cut interest rates by 25 basis points would see affordability further improve, subject to the banks passing on the full cuts.