NSW households used 35.6 per cent of their income to meet their mortgage repayments in the June quarter, according to a new report from the Real Estate Institute of Australia and Adelaide Bank.
That compared to a share of 35.3 per cent in the June 2014 quarter.
The Northern Territory experienced the biggest gain in affordability, with the share of income needed to meet mortgage repayments falling by 2.8 percentage points, from 26.6 per cent to 24.9 per cent.
Western Australia improved by 2.2 points, from 26.6 per cent to 24.4 per cent, while Tasmania improved by 2.1 points, from 25 per cent to 22.9 per cent.
South Australian mortgagees had a saving of 1.6 points, from 27.1 per cent to 25.5 per cent, while Queenslanders had a saving of 0.8 points, from 28.1 per cent to 27.3 per cent.
The ACT improved from 19.8 per cent to 19.5 per cent, while Victoria improved from 32.2 per cent to 32.1 per cent.
Across Australia, affordability improved from 30.9 per cent to 30.3 per cent.