Rent growth over the past 12 months means it’s still cheaper to buy than rent more than one-third of Australian homes.
According to the latest PropTrack Market Insight report, 36.3 per cent of homes nationally are cheaper than renting.
That’s up from 27 per cent in June 2022.
Buying conditions are most favourable in Western Australia, where 78.87 per cent of homes are cheaper to buy than rent, while in Queensland 53.3 per cent of homes are cheaper to buy than rent.
This is followed by Tasmania (48.1 per cent), South Australia (38.9 per cent), NSW (24.3 per cent) and Victoria (16.6 per cent).
“More than one-third of homes across Australia are cheaper to buy than rent,” PropTrack Senior Economist Paul Ryan said.
“Favourable buying conditions remain despite a record pace of interest rate increases and home prices increasing 36 per cent since the pandemic.
“This shows that there are still opportunities for buyers across the housing market.”
The City of Kwinana, in WA, has the best buying conditions, with 95 per cent of homes cheaper to buy than rent.
The same proportion of homes are also cheaper to buy than rent in the City of Gosnells.
In Melbourne, the local government area with the most properties cheaper to buy than rent is the city centre at 83 per cent.
In Sydney, 81 per cent of homes in Botany are cheaper to buy than rent, while in Brisbane, the Brisbane Inner area has 80 per cent of homes cheaper to buy than rent.
In Adelaide, the LGA of Playford has the most homes that are cheaper to buy than rent at 84 per cent, while in Hobart, 70 per cent of homes in Hobart – North West are cheaper to buy than rent.
“A record pace of rent growth – with advertised rents up 14.6 per cent over the past year – has offset higher buying costs in many regions,” Mr Ryan said.
“Buying conditions remain strongest in Queensland, South Australia and Western Australia, which points to continued upward pressure on prices in these regions.”
Mr Ryan things could change next year.
“Looking to 2024, higher interest rates will challenge housing affordability for many,” he said.
“This may slow price growth and rebalance conditions across the market.”