Despite having its reputation as having some of the most expensive properties, the ACT is still the most affordable state or territory to buy a home according to the Real Estate Institute of Australia's Deposit Power report.
Over the June quarter, the proportion of income needed to meet mortgage repayments was 17.3% compared with the national average of 24.8%. New South Wales is the most expensive state to own property in, with an income to loan repayment ratio of 31.3%.
Tasmania showed the greatest improvement in housing affordability, with the income to loan repayment amount decreasing 0.6% to 27.2% since the March quarter. Meanwhile, Queensland recorded the least improvement, rising 0.6% to 29.8%.
Due to median rents increasing at a lower rate than the increase in family income, the proportion of family income to meet rental payments has dropped by 0.3% on the same quarter last year. Again, ACT is the most affordable state with just 16.8% of income dedicated to rental payments, while in Tasmania, 30.4% of income goes towards rental - the highest in the country.
The report also showed a dramatic increase in the number of first time buyers in the last 12 months, surging by a massive 94.3%, thanks to low mortgage rates and the First Home Owners Grant Boost.
The Real Estate Institute of Australia's Deposit Power Housing Affordability Report found that in the June quarter this year, first time house buyers increased by 19.4% to 54,924, compared with just 28,262 in the same period last year.
