- By admin
- In Advocacy, Industry News
Media Release: ACT RENTAL AFFORDABILITY EASES WHILST HOUSING AFFORDABILITY WORST IN A CENTURY
For Immediate Release 7th June 2023
It is more affordable to rent than own property with a mortgage in the ACT despite recent media attention that would suggest otherwise – and the gap is widening according to the latest Housing Affordability Report (HAR) released by the Real Estate Institute of Australia (REIA).
Comparing data from the ABS, financial institutions & REIA market facts insights, the report released today
shows rental affordability has increased by 0.7% over the last 12-month period in the ACT. Conversely, the
proportion of family income devoted to meeting average loan repayments has increased by a significant
8.1%, which also does not take into account the latest interest rate increase affecting both owner occupiers
and investors alike.
REIACT CEO, Maria Edwards said “The ACT has somewhat bucked the national trend in relation to rental
affordability with the increase in vacancies resulting in a drop in rents now being offered across the market.
This means property managers are having some difficult conversations with landlords struggling to keep up
with increasing mortgage repayments, land tax rates, body corporate fees and insurance – not to mention
maintenance costs and upgrades to properties imposed by the rental reform legislation.”
“With speculation that interest rates will increase further it’s important we look at incentives to keep investors from selling rental properties or moving to the more lucrative short-term rental market, further reducing the pool of rental properties available otherwise the current reprieve in rents for tenants could be short-lived.”
The proportion of family income required to meet median rents in the ACT sits at 20.8%, which is lower by
comparison to Tasmania at 28.9% and Sydney at 26.1%. In contrast, the median family income required to
meet average loan repayments in the ACT was reported to be 34.6% up from 26.5% in the March 2022
quarter.
“While volatility still remains in the market, these latest figures are a positive indicator that rent affordability is improving, providing an opportunity to promote Canberra as an attractive place to live for interstate and
overseas workers who have previously been priced out of the ACT rental market.” Ms Edwards said.
REIACT urges the ACT Government now armed with this latest data, to renew their focus on long term
outcomes for the Territory and support all sectors of the housing market including owner occupiers, investors
and real estate agencies, along with tenants all of whom make such an important contribution to the ACT
economy.
END
