WA Housing Affordability Improves Slightly in September Quarter
Housing affordability in Western Australia improved marginally during the September 2025 quarter, according to the latest Real Estate Institute of Australia (REIA) Housing Affordability Report.
The proportion of family income required to meet average mortgage repayments fell to 40.5 per cent, a 0.5 percentage point improvement over the quarter, largely driven by the Reserve Bank of Australia’s August interest rate cut.
However, affordability remains more challenging over the longer term. Compared to a year earlier, the proportion of income required for repayments has increased by 0.6 percentage points, reflecting continued strong property price growth across the state.
Average home loan sizes in WA rose to $632,901, up 2.2 per cent over the quarter and 13.5 per cent over the year, the strongest growth of any state or territory. Loan commitments declined over the quarter for both owner-occupiers and first home buyers, though industry feedback suggests first home buyer activity is strengthening toward the end of the year following changes to the Australian Government’s 5% Deposit Scheme.
Rental affordability also declined, with the proportion of income required to meet median rent rising to 24.2 per cent. While rental price growth has slowed, median rents in Perth remain around $700 per week.
Despite these pressures, Western Australia remains one of the more affordable housing markets nationally, with only Tasmania and the two territories ranking as more affordable.
Source: Real Estate Institute of Australia (REIA)
Commentary: Real Estate Institute of Western Australia (REIWA)
