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Rental affordability on the up around Australia, but with some state-by-state fluctuations

06 September 2018 Tim Neary
rental affordability, Australia

On average, affordability has improved for renters around the country during the second quarter of 2018, but it is both up and down on a state-by-state basis, according to the latest research from the REIA and Adelaide Bank.

The REIA and Adelaide Bank Housing Affordability Report for the June quarter 2018 has found that the national proportion of income required to meet rent payments decreased to 24.1 per cent, down by 0.7 of a percentage point over the quarter and down by 0.3 of a percentage point against the June quarter 2017.

The report also found that state-based rental affordability improved in New South Wales, Victoria, Queensland, South Australia and Tasmania, and remained steady in Western Australia. But it declined in the Northern Territory and the Australian Capital Territory.

REIA president Malcolm Gunning said that New South Wales is the least affordable state or territory in which to rent, with the proportion of income to rent repayments at 28.8 per cent, a full 4.7 per cent higher than the national level.

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He also said that Western Australia, where the proportion of income required to meet median rents decreased to 16.3 per cent, is now the most affordable state or territory in which to rent.

NSW

Rental affordability improved in New South Wales over the June quarter, with the proportion of income required to meet median rent payments decreasing to 28.8 per cent, a decrease of 1.3 per cent and a decrease of 0.7 of a percentage point compared to the same quarter last year.

VIC

Rental affordability in Victoria has improved over the June quarter, with the proportion of income required to meet median rent decreasing to 23.3 per cent, down by 0.5 of a percentage point. However, compared to the June quarter 2017, rental affordability has declined, with the income to median rent up by 0.2 of a percentage point.

QLD

Rental affordability in Queensland improved over the quarter, with the proportion of the median family income required to meet the median rent decreasing to 22.2 per cent. This is down by 0.9 of a percentage point over the quarter and down by 0.8 of a percentage point on the same quarter in 2017.

SA

Rental affordability in South Australia improved over the quarter, with the proportion of income required to meet rent payments decreasing to 22.0 per cent, down by 0.4 of a percentage point. However, against same quarter 2017, rental affordability is down, with the income to median rent up by 0.1 of a percentage point.

WA

Rental affordability in Western Australia has remained unchanged during the June quarter, at 16.3 per cent. However, against the June quarter 2017, rental affordability is up, with the proportion of income to median rent down by 0.5 of a percentage point.

TAS

Rental affordability in Tasmania improved over the quarter, with the proportion of income required to meet median rents decreasing to 27.6 per cent, a decrease of 0.5 of a percentage point. It is down on the June quarter 2017, with the proportion of income to median rent up by 1.8 per cent.

NT

Rental affordability in the Northern Territory has also declined over the quarter, with the proportion of income required to meet the median rent increasing to 22.6 per cent, an increase of 0.1 of a percentage point over the quarter. Against the June quarter 2017, rental affordability is up, with proportion of income to median rent decreasing by 0.5 of a percentage point.

ACT

Rental affordability in the Australian Capital Territory has also declined over the quarter, with the proportion of income required to meet the median rent increasing to 18.6 per cent, an increase of 0.1 of a percentage point over the quarter, and an increase of 0.7 of a percentage point over the June quarter 2017.

Rental affordability on the up around Australia, but with some state-by-state fluctuations
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