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Housing affordability highest in decade

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By a staff reporter

Houses are more affordable than at any time in the past decade according to research released by the Real Estate Institute of Australia (REIA).

According to the research, housing affordability has improved in the past two years with the proportion of income to meet repayments now sitting at 28.7 per cent.

The Australian Capital Territory (ACT) remains the most affordable state and at 5.6 per cent higher than the rest of the country, New South Wales (NSW) the least.

Real Estate Institute of Australia President, Peter Bushby said that with the exception of the Northern Territory, all states and territories recorded improvements over the June quarter, the largest in Queensland.

“Affordability is improved in all states and territories when compared to the same time last year and no doubt, the seven interest rate cuts since November 2011 have played a role,” said Mr Bushby.

The REIA suggested stamp duty reforms, access to superannuation and assistance to first home buyers as a way to boost the participation of first-home buyers in the market.

Quick Summary: 
Interest rate cuts lift affordability, with most states improving this quarter.
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