NSW and Victoria becoming more affordable property markets



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Housing affordability has improved in four states and territories, while rental affordability has also improved in four, according to a new report.

The latest REIA/Adelaide Bank Housing Affordability Report, which covers the December quarter, found that housing affordability improved in New South Wales, Victoria, Western Australia and the Northern Territory during 2018 (see table below).

Meanwhile, rental affordability improved in New South Wales, Victoria, Queensland and the Northern Territory (see table below).

Affordability is judged on the proportion of family income needed to meet home loan repayments or rental payments.

This reflects the fact that property prices and rents, as well as incomes, differ from state to state.

Proportion of family income needed to meet home loan repayments

Region Dec 2017 Dec 2018 Change
NSW 37.8% 36.7% -1.1 points
Vic 33.4% 33.1% -0.3 points
Qld 27.6% 28.1% +0.5 points
SA 26.4% 27.5% +1.1 points
WA 23.9% 23.1% -0.8 points
Tas 25.7% 26.3% +0.6 points
NT 20.9% 19.4% -1.5 points
ACT 19.6% 20.6% +1.0 points
Australia 31.6% 31.2% -0.4 points

Proportion of family income needed to meet rental payments

Region Dec 2017 Dec 2018 Change
NSW 29.7% 28.3% -1.4 points
Vic 23.6% 23.2% -0.4 points
Qld 22.7% 22.1% -0.6 points
SA 21.9% 22.0% +0.1 points
WA 16.4% 16.6% +0.2 points
Tas 26.8% 28.1% +1.3 points
NT 23.1% 21.3% -1.8 points
ACT 18.2% 18.9% +0.7 points
Australia 24.5% 24.0% -0.5 points
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