WA’s Rental Affordability Hits Record Lows Amid Housing Shortage

Western Australia’s rental market has reached record levels of unaffordability, with tenants facing increasing financial strain as rents continue to rise. According to PropTrack data, rental prices have surged by 80% since the onset of the COVID-19 pandemic, making it harder than ever for many residents to secure housing. By the December 2024 quarter, the proportion of household income spent on rent climbed to 24.3%, marking a 1.8 percentage point increase over the year. This growing pressure is particularly affecting lower-income renters, who are struggling to compete in a highly competitive market.

A key factor behind WA’s rental crisis is the severe shortage of available properties. Population growth, coupled with a slowdown in housing construction, has contributed to historically low vacancy rates, leaving tenants with limited options. With demand far exceeding supply, rental prices continue to escalate, forcing many tenants to pay above advertised rates or engage in bidding wars just to secure a home.

To address the crisis, the government has introduced various initiatives, including incentives for build-to-rent developments and stamp duty concessions for off-the-plan purchases. While these measures aim to boost housing supply, they have yet to provide noticeable relief, as new developments take time to reach the market. In the meantime, tenants continue to face rising costs and increased competition for the limited rental properties available.

For many renters, these challenges are creating long-term affordability concerns. With rent increases outpacing wage growth, more households are being pushed into financial stress. This is particularly concerning for those on lower incomes, who are often left with few options beyond paying unsustainable rental prices or facing housing insecurity.

Until rental supply improves, affordability is likely to remain a key issue in WA. While government interventions may help in the long run, immediate solutions are needed to provide relief for struggling tenants. As demand for housing continues to grow, ensuring greater rental availability will be essential in restoring balance to the market.