The REIA Housing Affordability Report shows rent affordability has improved across the country in the June quarter, with figures not seen since late 2007.
“The proportion of income required to meet rent payments decreased to 23.3 per cent in the quarter, a decrease of 0.4 percentage points over the quarter and down 0.5 percentage points compared to the same time last year,” said REIA president, Adrian Kelly
“This can be mainly attributed to the reduction or stabilisation of rents during the June quarter.”
Only the ACT had an increase in rents over the quarter.
“Rental affordability has not been this high since December 2007, a positive for renters in these COVID times.”
It’s good news for owner-occupiers as well, with the percentage of household income needed to meet mortgage payments dropping 0.2 per cent over the June quarter, to 34.5 per cent.
“Even though the family income only increased 0.1 percentage point during the period, the average loan repayment decreased 0.6 percentage points through a drop in the average variable standard interest rate,” Mr Kelly said.