Homes in the WA capital are the most affordable in Australia where a median income household is able afford one in five homes in Perth’s southern suburbs.
According to the PropTrack Affordability Hotspots Report, Western Australia and Queensland have emerged as Australia’s affordability havens with just over half of all regions across the country containing homes that are affordable for those on median incomes in these two states.
The report found Perth had the most affordable capital city regions in the country.
PropTrack senior economist and report author Paul Ryan said it was no secret the property market was incredibly tough right now for first home buyers and lower income households.
“This report has been able to isolate pockets around the country where access to the market remains relatively affordable,” he said.
“Looking across Australia, the most affordable capital city regions are in Perth.” Affordability remains a key driver of the strength in the Western Australian market, with Perth experiencing the strongest price growth of any market over the past year.
“In WA, 41 per cent of regions in the state have a significant proportion of homes affordable to those on median incomes.
“Queensland and the Northern Territory also have a large portion of regions with more favourable affordability conditions compared to the rest of the country.
Most affordable regions 2024
Sydney remained the least affordable city in Australia with just 3.8 per cent of home sales affordable for median income households, while 7.1 per cent of home sales were affordable for median income households in Melbourne, the report found.
The inner-city was Melbourne’s most affordable region due to the high concentration of units, while Melton—Bacchus Marsh in the west held the best affordability for those looking to buy a house.
Brisbane’s affordability standout was Springwood—Kingston, where a median-income Brisbane household can afford one in five homes. Regions in Ipswich also ranked well for affordability, the report said.
Ryan said that across regional areas, outback regions topped the list for affordability.
While remote, these regions continued to have high accessibility for households with median incomes, with well above two thirds of homes considered affordable, he said.
“The results from this report quantify the challenging state of housing affordability across the country,” Ryan said.
“Very few regions remain affordable to households earning median incomes or lower, highlighting the role that existing wealth plays in entering home ownership given the high level of prices across the country.”
