HOUSING affordability in WA is at the worst level in the 30 years since records began in 1996, according to data from the Real Estate Institute of Australia (REIA).

The latest REIA Housing Affordability Report shows the proportion of family income needed to meet loan repayments in WA rose 2.3 percentage points over the March 2026 quarter to 45.9 per cent.

This eclipses the previous peak of 41.2 per cent set in the September 2008 quarter.

Real Estate Institute of Western Australia (REIWA) President Suzanne Brown said the decline in affordability was driven by increases in interest rates in February and March, combined with ongoing strong growth in property prices in the first three months of the year.

“Most of the March quarter was characterised by lower-than-average new listings and consistently strong demand,” she said.

“This saw the rate of price growth accelerate, with Perth’s median house sale price reaching $900,000 at the end of the quarter.

“This was an increase of 5.3 per cent on the December 2025 quarter.

“The median unit sale price was $642,000 at the end of the March quarter, up 7 per cent on the previous quarter.

“Strong price growth usually leads to larger mortgages, and when you combine this with two interest rate increases that have added approximately $200 per month to a mortgage of $700,000, you see a sharp decline in affordability.

“Although the rate of price growth is easing over the June quarter, a third interest rate increase in May is likely to see affordability decline further.”

According to REIWA, housing affordability in WA also declined over the year, with the proportion of family income required to meet loan repayments increasing 5.2 percentage points from 40.7 per cent in the March 2025 quarter.

Despite housing affordability continuing to decline, WA remained relatively affordable when compared with many other parts of the country.

Only Tasmania, the Northern Territory and the Australian Capital Territory were more affordable for home buyers.

New South Wales was the least affordable state, with 58.4 per cent of family income required to meet mortgage repayments.

REIWA reported that loan activity was decreasing with the average loan size being $702,699.

Ms Brown said the decline in the number of loans was to be expected, as was the increase in average loan size.

“While demand was strong in the March quarter, listings were lower than usual, which resulted in fewer sales and, therefore, fewer loans,” she said.

“This increase in the average loan size reflects the strong growth in property prices, with people needing larger loans to purchase a property.”

As of June 28, sales transactions in Perth last week were up 1.9 per cent with Brabham being one of the top selling suburbs according to REIWA.

Brabham sold nine houses, only putting it behind Maylands with 11 and Balga with 14 in terms of properties sold.