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The latest CommSec State of the States report for the March quarter 2025 has revealed Western Australia once again took the top spot on the leaderboard for the third consecutive quarter, ranking first on retail spending, relative unemployment, relative population growth, housing finance, and dwelling starts.
For home lending, the value of home loans in Western Australia was up by 43.2 per cent on the long-term decade average, followed by Queensland, which was up by 40.3 per cent; South Australia by 28 per cent; and Victoria by 22 per cent.
According to the report, housing finance commitments are now above decade averages in the December quarter in all states and territories, with the Northern Territory finally breaking through above the decade average.
However, home lending in the NT was still by far the weakest among the states, sitting 9.9 per cent above the decade average.
Meanwhile, commitments in the ACT were up by 14.8 per cent, just behind Tasmania (up by 15 per cent) and NSW (up by 15.2 per cent).
Lending in Western Australia was also the strongest in annual terms, which was up by 25.4 per cent, followed by Queensland (24 per cent) and the NT (23.8 per cent).
For the remaining states, lending for South Australia was up 16.1 per cent, sitting ahead of Victoria (15.7 per cent), Tasmania (14.4 per cent), the ACT (14.3 per cent), and NSW (10.5 per cent).
Commenting on the data, chief CommSec economist Ryan Felsman said: “Western Australia performed strongly across multiple economic indicators, as ‘The West’s’ strong relative population growth has boosted labour and housing markets, encouraging consumers to spend.
“Overall, the economic performance of Australia’s states and territories is being supported by a strong job market, robust government spending and solid population growth at a time of higher cost-of-living pressures.
“Economic growth has slowed however, as consumer spending remains subdued due to still-elevated borrowing costs.
“As we look ahead, an expected reduction in interest rates could boost economic sentiment in the mortgage-sensitive states of New South Wales and Victoria, while the interplay between interest rate cuts, federal election outcomes, and global trade dynamics will be crucial in shaping the economic outlook.”
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