What is housing affordability?
Do you know that housing affordability in Perth is one of the best in Australia? The housing affordability index covers a range of factors including the challenge of saving for a deposit and the ratio of household income to house prices. The latest report indicates that there has been a significant improvement in housing affordability in Perth since 2014 with incomes rising at a higher rate than median prices.
In fact, based on the price to income ratio, household affordability in Perth is much better than in Sydney, Melbourne, Brisbane, Adelaide and Hobart. Even with the recent reduction in house prices in Sydney and Melbourne, the cost of housing would have to drop substantially over a number of years for these cities to come anywhere near the affordability in Perth.
Buyers have power in Perth
In a buyer’s market, housing affordability is high and the latest REIWA Curtin Buy-Rent Index has determined that it’s the best time to buy a new home in Perth. This index determines whether it’s best to buy or rent in Perth and with median prices dropping and rent increasing, the latest Buy-Rent Index is heavily swayed in favour of buying.
On top of these indexes, we have the welcome decline in mortgage interest rates, resulting in a very positive outlook for buyers over the next few years. In fact, you can get more for your money in Perth right now, and that’s not expected to change any time soon!
Perth is one of Australia’s most liveable cities
With beautiful beaches, world class educational facilities, plenty of sunshine and a laid back atmosphere, Perth has a lot to offer singles, families, couples and retirees. First class restaurants, cafes and designer shopping, a rich tapestry of cultural experiences and a low unemployment rate, all make Perth a city with a lifestyle that is the envy of many in Australia.
With quality healthcare and a lower cost of living than Brisbane, Adelaide, Melbourne and Sydney it’s a very good time to be living and buying in Perth. Call Thompson Sustainable Homes on 1300 90 40 40 for more information on house and land packages in Perth.