Hot off the press is the Real Estate Institute of Australia’s Housing Affordability Report for the June 2025 quarter.
It shows slight improvements to mortgage and rental affordability, so the optimists among us will say things are moving in the right direction, despite the cost of housing remaining way too high.
Following on from positive results seen during the March quarter, housing affordability improved nationwide except in Western Australia. Mortgages are still eating up 47.7% of Australian household incomes but at least that is 0.3 percentage points lower than the previous quarter. National median rental figures to the June quarter also improved, with rents now absorbing 24.4% of household income.
During the June quarter national median house prices rose 1.9% to $1,098,671 and the average loan for first home buyers around the country rose 2.2% to $554,961.
In Victoria, mortgage repayments to June 2025 ate up 44.5% of the household income, 0.7% less than they did in the March quarter. There was also a slight improvement to rental affordability, dropping from 21.3% of household income in March to 21.0% in June.
Victoria also recorded the nation’s strongest first home buyer activity in June with 10,188 new buyers entering the market. First home buyers now represent more than 41% of owner-occupiers in the Victorian property market.
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