Perth's Named Least Affordable for Renters

Perth has been named Australia’s least affordable capital city for renters, as a new report has found locals are spending more than 30 per cent of their income, on average, towards rent.

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In the last decade, rental prices in Perth have climbed 43%, with the average weekly rent increasing from $440 to $630.

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This surge in housing costs has transformed Perth from being the most affordable capital city for renters to equal first as the least affordable.

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The Rental Affordability Index revealed that Perth residents are now spending more than 30% of their income on rent—a historic high shared only with Sydney. 

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The change in market conditions has been driven by a surge in WA’s population growth and a shortage of trades to build additional housing supply since the end of the COVID-19 pandemic.

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This led the Perth rental vacancy rate to drop to historic lows of 0.7% in 2022.

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While the vacancy rate has since risen to 1.4%, it’s still significantly below what REIWA considers a balanced market of 2.5-3.5 per cent.

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Rent Choice general manager Clare Christiansen said there were signs of Perth’s rental crisis easing as more properties were being built, but the higher prices would persist into 2025.

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“We are seeing more rental stock come to market as tenants make the switch to home ownership and move into their newly built homes, while investors are coming to market with newly completed properties for lease,” Clare said.

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“While the worst of the rental market crisis might be behind us, there is still a lot of competition for stock, especially in the lower and middle price brackets, so we expect rental prices to remain elevated when compared to pre-pandemic levels.” 

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Source:

MSN. (n.d.). https://www.msn.com/en-au/news/australia/perth-residents-spending-30-per-cent-of-income-on-housing-as-city-named-least-affordable-for-renters/ar-AA1uAUdL?ocid=BingNewsVerp

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