Perth bypasses Sydney to claim title of least affordable capital for renters

With the state election just months away, Shelter WA called on all parties to back its election priorities, including committing to adding at least 5000 social and affordable homes to WA’s housing stock every year.

Shelter WA’s analysis showed the state electorate of Mandurah had the highest need for social and affordable housing, requiring about 188 additional homes annually.

The metro electorates of Armadale, Butler and Mirrabooka each needed at least 150 additional social and affordable homes every year, while the regional electorates of Bunbury, Dawesville and Kimberley required at least 100 each.

SGS Economics & Planning principal Ellen Witte said rental affordability in Perth had hugely declined over the past four years, hitting a record low RAI score of 98 in 2024. This brought the city into the “unaffordable” category for the first time.

“A household renting at the median rate now faces paying 31 per cent of its income on rent,” she said.

“Just four years ago, in mid-2020, rent represented 20 per cent of income.

“In regional WA, the average rental household paid 19 per cent of their income if renting a median rental in 2020. This has now risen to 26 per cent in 2024.”

The index found that the median Perth weekly rent of $629 took up 31 per cent of the median rental household income, exceeding the threshold for rental stress and overtaking Sydney, which is on 30 per cent.

In regional WA, median rents of $572 took up 26 per cent of median rental household income, and this figure would be even higher for many renters outside the highly paid mining industry.

Focus Property Wealth mortgage broker Glenn Biggins said there were 1915 rentals available, a slight increase from the 1719 properties available 12 months ago, indicating a trend to return to a more balanced rental market.

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This is also reflected in the median rental asking price remaining at $650 per week.

“Real estate agents have reported inquiries from eastern states buyers seeking investment properties have diminished, suggesting a shift in demand dynamics previously due to Perth’s affordability over other capital cities,” he said.

“This suggests a potential market slowdown is under way, although the overall strength remains undeniable.”