The REIA has released its Housing Affordability Report for the September 2025 quarter, confirming a third consecutive improvement in housing affordability after the all-time low recorded in December 2024. Nationally, the proportion of family income required to meet average home loan repayments eased to 47.0 per cent, an improvement of 0.5 percentage points over the quarter and 1.6 percentage points over the year.
Rental affordability remained stable over the quarter, with median rent continuing to require 24.3 per cent of household income nationally, representing an annual improvement of 0.5 percentage points.
Key takeaways for real estate professionals
Victoria recorded the most significant number of first-home buyers nationally, with 9,835 new entrants, accounting for 33.6 per cent of all first-home buyers across Australia.
Housing affordability improved in all states and territories except Queensland, where affordability declined marginally over the quarter.
The national median house price rose to $1,130,518, up 3.1 per cent over the quarter and 7.4 per cent year-on-year.
The national average loan size for first-home buyers increased to $560,249, up 1.0 per cent over the quarter and 4.4 per cent over the year.
An August interest rate cut supported affordability, with the RBA cash rate reduced to 3.6 per cent, contributing to lower average variable and fixed mortgage rates.
In Victoria, affordability continued to improve, with mortgage repayments now accounting for 43.4 per cent of family income, down from 44.4 per cent in the June 2025 quarter. Rental affordability also increased, with 20.7 per cent of income required to meet median rents, down from 21.0 per cent in the previous quarter.
While first-home buyer activity softened slightly compared to June, Victoria dominated its position as the nation’s leading market for new entrants, with first-home buyers comprising almost 40 per cent of the state’s owner-occupier market.