Rental affordability is now at its best level in almost five years, according to new quarterly data.
The Real Estate Institute of Australia (REIA) said the proportion of income required to meet rent payments decreased 0.2 percentage points to 24.8 per cent.
REIA chief executive Amanda Lynch said rental affordability is now at its best level since the June quarter of 2009.
“The Northern Territory recorded the best improvement with the proportion going down by 1.3 percentage points while the figure dropped 0.1 percentage point in Victoria and Queensland,” she said.
However, the REIA said housing affordability in Australia is worsening, with it now at its lowest levels since the March quarter of 2013.
“The latest comprehensive data shows a drop in housing affordability nationally with the proportion of income required to meet loan repayments increasing by 1.1 percentage points to 31.5 per cent,” Ms Lynch said.
“In every state and territory, housing affordability has worsened as a result of strong rises in property prices and only modest increases in income.”
NSW was once again the least affordable place to buy a home, however, Tasmania showed the greatest change.
The REIA said in the Apple Isle, the proportion of income required to meet loan repayments has risen 1.5 percentage points to 25.9 per cent – the biggest worsening in housing affordability across the country.
The figures for South Australia and Western Australia were 27.8 per cent and 26.1 per cent respectively.
The Australian Capital Territory was still the most affordable state or territory in which to buy a home with the figure sitting at 20.4 per cent.
[Related: Landlords struggle as rents stagnate]