Perth Affordability Questioned

There’s been a lot of talk recently about Perth’s declining affordability. Renters have been the hardest hit in Perth’s property market boom. SQM research shows rents have risen by 8.7% across all dwelling types over the past 12 months.

The ANZ CoreLogic Housing Affordability Report released in November shows that housing affordability metrics deteriorated across most of the country in 2024, and Perth was no exception. The good news for Perth homeowners is that between March 2020 and October 2024 the city has experienced 76% capital gains, the highest of all the capitals.

Unfortunately this also means that Perth’s dwelling value to income ratio is 7.3, the highest it’s been in many years. However, Sydney still tops that list, with a ratio of 9.8.

It also now takes 9.8 years to save the 20% required for a house deposit in Perth, again, a marked increase in recent times. Sydney has it much worse though, with a household needing 13.1 years to save their deposit, and even in Adelaide, that 20% takes 11.8 years to save.

Whilst renters in Perth are currently having to use 32.8% of their income to pay rent, lets spare a thought for our neighbours in South Australia. In Adelaide, rent is 34.6% of income. Even Sydney-siders are paying 33.3% of their income in rent.

With 46.4% of income needed to pay a mortgage in Perth, it could be easy to conclude that Perth is no longer an affordable city. In Sydney, a staggering 62.1% of income is required to service a home loan. Both Brisbane and Adelaide will require you to fork out over 50% of your income to keep up with those repayments.

Perth might not be as affordable as it was in the past, but, no where is. Perth is a long way from being the least affordable though, for renters and homebuyers.

Source: CoreLogic

What’s Happening In The Perth Property Market?

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