WA Housing And Rental Affordability At Record Lows

Housing affordability in WA is at the lowest level on record, according to data from the Real Estate Institute of Australia (REIA).

The latest REIA Housing Affordability Report shows the proportion of family income needed to meet loan repayments in WA rose 1.6 percentage points over the June 2026 quarter to 47.5 per cent. This was the largest decline in affordability among all the states and territories.

REIWA President Suzanne Brown said the decline in affordability was driven by a third interest rate increase of the year in May and further growth in property prices.

“Rising prices have seen the average mortgage in WA increase by about $17,000 over the quarter and nearly $100,000 over the year,” she said.

“Three interest rate increases this year, combined with the increase in the average mortgage, have seen repayments rise by nearly $300 over the quarter and over $1,000 since the June 2025 quarter.

“WA’s market has been stronger for longer than other states, such as New South Wales and Victoria, where softer prices and smaller average mortgages have mitigated the increases in interest rates.

“However, our market has eased in the past few months. If this continues, and if interest rates remain stable, we may start to see a slight improvement in affordability over the remainder of the year.”

Housing affordability in WA declined over the year, with the proportion of family income required to meet loan repayments increasing 6.3 percentage points from 41.2 per cent in the June 2025 quarter.

Housing affordability improved in New South Wales and Victoria in the June quarter.

It remained unchanged in Tasmania and declined in Queensland, South Australia, the Northern Territory and the Australian Capital Territory.

New South Wales was the least affordable jurisdiction, with 57.7 per cent of family income required to meet mortgage repayments.

Table 1: Proportion of median family income to meet average loan repayments

Source: Real Estate Institute of Australia (REIA).

Loan activity

There were 10,014 loans to owner occupiers in WA during the June 2026 quarter. This was a 9.1 per cent increase on the March quarter but 4.7 per cent lower than the same time last year.

The average owner-occupier loan size increased 2.5 per cent over the quarter and 16.1 per cent over the year to $720,012.

Ms Brown said the increase in the number of owner-occupier loans was to be expected, as was the increase in the average loan size.

“After lower-than-average new listings in the March quarter, we saw new listings increase over the June quarter. This led to an increase in the number of sales, and therefore loans,” she said.

“The increase in average loan size reflects overall price growth. It also reflects an increase in upgrader activity and a decline in the proportion of first home buyers over the quarter, as they tend to purchase the more affordable homes.”

There were 3,592 loans to first home buyers during the June quarter, an increase of 2.1 per cent from the March quarter but 1.8 per cent lower than a year ago.

First home buyers made up 35.9 per cent of owner-occupier loans in WA, down from 38.4 per cent in the March quarter.

The average loan size for first home buyers increased 0.6 per cent over the quarter to $610,941. This was 16.3 per cent higher than the June 2025 quarter.

“While the Federal Government’s changes to taxation policy have succeeded in their aim of discouraging investors, they have had the unintended consequence of also deterring first home buyers,” Ms Brown said.

“Although competition in the market has reduced, first home buyers seem to be waiting for significant price falls, an expectation created by media reporting, particularly on changes in east coast property markets.”

Rental affordability

Rental affordability declined slightly in the June 2026 quarter.

The proportion of family income required to meet median rent payments increased 0.4 percentage points over the quarter to 25.0 per cent. This was 1.0 percentage point higher than the June 2025 quarter.

“Perth’s median weekly rent prices were relatively stable in the June quarter, which is why affordability only declined marginally,” Ms Brown said.

“The median weekly house rent price rose 1.4 per cent over the quarter to $750, while the median weekly unit rent price remained unchanged.

“Over the year, median rent prices have increased 7.1 per cent and 7.7 per cent for houses and units respectively.

“While annual rent price growth has slowed considerably from 20.0 per cent for houses and 22 per cent for units in 2023, we still hold grave concerns about rental affordability.

“According to ABS lending data, lending to investors fell 5.1 per cent in the June quarter in the wake of the Federal Government’s changes to taxation policy.

“We saw investors sell in the lead-up to the Federal Budget and now investor purchasing activity has declined.

“Rental supply has only just returned to the peak recorded in February 2021, before a mass exodus of investors saw it drop by around 20,000 properties, or 8.4 per cent. However, our population has grown 12 per cent in that time and most of that has been from overseas migration, which supports the demand for rental housing.

“Demand for rental properties remains high. This is demonstrated by the Perth vacancy rate, which is 1.9 per cent, and the median time to rent a property, which remains around two weeks.

“If supply remains static, or worse, declines again, we will see increased upward pressure on rent prices and greater declines in affordability.”

Nationally, rental affordability improved in New South Wales, Queensland and the Australian Capital Territory in the June 2026 quarter. It declined in Victoria, South Australia, Tasmania and the Northern Territory.

The Northern Territory is currently the least affordable jurisdiction for tenants, with 28.8 per cent of family income needed to meet rent payments, an increase of 3.0 percentage points over the quarter. The ACT was the most affordable at 18.5 per cent.

Table 2: Proportion of family income needed to meet rent payments

Source: Real Estate Institute of Australia (REIA).