All states and territories have experienced improvements in rental affordability, except for Victoria, Tasmania and South Australia.
The proportion of family income needed to meet rent repayments in Australia fell from 25.4 per cent for the June quarter in 2014 to 25 per cent in the 2015 June quarter, according to new figures released by Adelaide Bank and the Real Estate Institute of Australia.
The Northern Territory registered the biggest improvement, with the proportion of family income needed to meet rent repayments falling from 34.7 per cent to 31.3 per cent.
It was followed by Western Australia, where affordability improved from 24.4 per cent to 22.2 per cent.
The ACT remained the most affordable region after improving from 17.3 per cent to 16.9 per cent.
In New South Wales, the proportion improved from 28.8 per cent to 28.4 per cent, while in Queensland, affordability improved from 23.6 per cent to 23.5 per cent.
The biggest fall in affordability occurred in Victoria, where the share of income needed to make rent repayments rose from 22.8 per cent to 23.2 per cent.
In Tasmania, the proportion changed from 25.5 per cent to 26 per cent, while South Australia remained steady at 23.4 per cent.