The June 2025 Housing Affordability Report revealed that the proportion of median family income required to meet average loan repayments dropped to 47.7%, a 0.3 percentage point improvement on the previous quarter.

Key highlights include:
-First-home buyer activity up 15.8%, with more than 30,000 new loan commitments
-Rental affordability improved for the third consecutive quarter, with the share of income needed for rent nationally falling to 24.4%
-Lower borrowing costs, with the average variable rate easing to 8.3%
-An increase in overall loan commitments, with owner-occupiers making 83,416 new loans in the quarter

While most states recorded improvements, Western Australia saw a slight decline in affordability of 0.4%. However, Perth’s market remains active, with first-home buyers in particular driving demand.

“With another rate cut possible later this year and affordability showing consistent improvement, the outlook for buyers is brighter than it has been in some time,” said REIA President Leanne Pilkington.

For Perth buyers, builders, and refinancers, this shift presents opportunities to re-enter or move forward in the market with greater confidence.

👉 At Loan WA, we help clients navigate changing conditions with expert guidance, personalised loan strategies, and a clear path forward.

Get in touch with our team today to discuss how these changes could benefit your plans.