How Perth's Housing Supply Is Changing

Perth's growing population is creating an ongoing need for new housing, with developers, builders and governments working to increase supply across the metropolitan area. While construction activity is showing signs of improvement, the challenge remains ensuring enough homes are delivered to meet demand.

Perth's Growing Need for Housing

Western Australia's housing construction pipeline has strengthened throughout 2026, with new dwelling approvals and construction starts increasing.

According to Australian Bureau of Statistics data, more than 24,200 homes commenced construction across WA in the year to March 2026, an increase of 15.2% compared with the previous year.

However, the number of homes being completed remains below the levels needed to meet longer-term housing targets.

The Urban Development Institute of Australia (UDIA) estimates that approximately 17,000 new dwellings were completed across Greater Perth's greenfield and multi-unit infill sectors in 2025, highlighting the continuing challenge of delivering enough new housing.

Where Are Perth's New Homes Being Built?

Perth's housing growth is taking place through two main forms of development: greenfield expansion and urban infill.

Greenfield development involves creating new residential communities on previously undeveloped land, generally towards the outer edges of the metropolitan area. These developments typically include detached houses, new roads and community infrastructure.

Urban infill, on the other hand, introduces additional housing into established suburbs through subdivision, redevelopment and higher-density residential projects.

In areas such as Mount Lawley, North Perth and surrounding suburbs, infill development can provide opportunities for additional homes while making use of existing transport connections, schools, shops and other amenities.

Both forms of development play an important role in accommodating Perth's growing population.

More Variety in Housing Types

While detached houses remain a significant part of Perth's residential landscape, there is increasing attention on delivering a wider range of housing options.

Apartments, townhouses, villas and smaller-lot homes can provide alternatives for first-home buyers, downsizers and households seeking lower-maintenance living.

The State Government has also proposed changes to Western Australia's Residential Design Codes, commonly known as the R-Codes, to encourage additional housing within established suburbs.

Announced in July 2026, the proposed reforms include changes that could make subdivision possible for more than 50,000 existing residential properties across metropolitan Perth.

If implemented, these changes could create further opportunities for housing diversity, although individual development potential would remain subject to applicable planning requirements and approvals.

Why Does New Housing Take Time?

Although an increase in building approvals is encouraging, approval does not mean a home is immediately available.

Before construction can begin, developments may require planning assessments, infrastructure connections, financing and suitable construction resources.

Building costs, labour availability and the complexity of individual projects can also influence how quickly new homes reach completion.

These challenges are particularly relevant for apartment and townhouse developments, which often involve more complex planning, financing and construction processes than individual houses.

As a result, there can be a considerable delay between a development receiving approval and the completed homes becoming available to buyers or tenants.

What Does This Mean for Perth's Future?

Increasing housing supply will remain an important priority as Perth continues to expand.

The State Government's longer-term planning framework aims to accommodate a growing population while encouraging more development within existing urban areas.

Achieving this balance will require a combination of new residential communities, well-planned infill development and greater diversity in housing types.

For buyers and homeowners, these changes may gradually influence the range of properties available, the character of local neighbourhoods and opportunities for future development.

As Perth continues to grow, delivering a diverse and sustainable supply of housing will be essential to meeting the changing needs of the city's residents.