The REIA has released its Housing Affordability Report for the June 2025 quarter, highlighting a second consecutive improvement in both housing and rental affordability, following an all-time low in December 2024. Nationally, the proportion of family income required to meet average loan repayments has eased to 47.7 per cent, down 0.3 percentage points for the quarter and 0.5 percentage points over the year. Rental affordability also improved slightly, with median rent now requiring 24.4 per cent of household income.
Key takeaways for real estate professionals
· Victoria continues to lead the country in first-home buyer activity, with 10,188 new entrants, representing 33.9 per cent of all first-home buyers nationally.
· Housing affordability improved in every state and territory except Western Australia, with Tasmania recording the strongest quarterly improvement.
· Nationally, the weighted average median house price rose to $1,098,671, up 1.9 per cent over the quarter and 4.6 per cent year-on-year.
· The average loan size for first-home buyers rose to $554,961, up 2.2 per cent over the quarter and 2.2 per cent year-on-year.
· Interest rate cuts earlier this year supported affordability, with the RBA cash rate sitting at 3.85 per cent by the end of the quarter.
In Victoria, affordability improved modestly, with mortgage repayments now accounting for 44.5 per cent of family income, down from 45.2 per cent in March. Rental affordability also improved, with 21 per cent of income required for rent, down from 21.3 per cent in the previous quarter. Despite pressures from rising house prices and larger loan commitments, Victoria recorded the nation’s largest number of first-home buyers, who made up more than 41 per cent of the state’s owner-occupier market.