Which state has the most affordable housing market?

By Gerv Tacadena

Northern Territory is the most affordable state in Australia.

Homebuyers and property investors looking for the most accessible and affordable state should consider the Northern Territory. The state has the highest home-loan affordability index reading in the country at 49.6, according to PRD Nationwide's latest study.

The state's home-loan affordability index reading declined marginally from 51.5 in the previous quarter. Despite the slight moderation, the state remained the most affordable housing market. A testament to the Northern Territory's affordability is the 12.7% increase in the number of first-home buyers in the state's housing market.

"This contrasts with the 11.6% decline in the Australian average. In the 12 months to the December quarter of 2018, the NT recorded an increase of 24.3%, while the Australian average declined by 5.8%," the study said.

Also read: Why moving up north makes sense for priced out first home buyers

The Northern Territory manifested robust economic fundamentals — it has the lowest unemployment rate and highest median weekly family income growth amongst all states.

The unemployment rate in the Northern Territory was 4.4% in June 2019. While this represented a 1.6% increase over the past year, the state's joblessness rate was lower than the Australian average of 5.2%.

In terms of median weekly family income, the state clocked in at $2,172 in the March quarter of 2019, representing a 2.5% increase in the past 12 months.

"From a property perspective, this suggests a potential increase in the number of home buyers and investors," the study said.

The image below shows the Northern Territory's key market indicators for Q3 2019:

Northern Territory - Q3 Key Market Indicators.

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