Stabilising Rental Market Brings Hope for Perth Renters

The rental crisis has created tough conditions for Australian renters over the past three years, but recent signs suggest that the market is starting to stabilise.

Perth has experienced one of the most significant shifts in the rental market. Over the past year, new rental listings in Perth have surged by 34%, the highest increase among all capital cities. This influx of new listings has helped ease the pressure on the rental market, contributing to a more balanced environment for renters.

Although rents in Perth remain high, the pace of rental price growth is beginning to slow. Over the past quarter, weekly rents for houses in Perth have either remained flat or seen only modest increases, signalling that the affordability ceiling may be nearing. This stabilisation in rental prices is a welcome relief for tenants who have been struggling with escalating costs.

The easing of vacancy rates is another positive sign. While Perth’s rental market remains tight, the increase in rental listings has contributed to a slight rise in vacancies, helping to alleviate some of the upward pressure on rents. This change is significant, as it suggests that the worst of the rental crisis may be behind us.

One of the key factors driving these changes is the return of investors to the Perth market. The strong growth in rents and rising property prices have attracted investors back into the market, leading to an increase in rental supply. This boost in supply, combined with a slight tapering in demand, has helped create more stable conditions for renters.

However, challenges remain. Despite the recent stabilisation, Perth’s rental market is still tight, and affordability remains a concern for many renters. The rental market in regional Western Australia also presents a different picture, with vacancy rates falling and rental prices continuing to rise, driven by ongoing population shifts towards regional areas.

While the rental crisis is not yet fully resolved, the recent trends in Perth offer hope for renters. The combination of increased rental supply, slowing price growth, and easing vacancy rates suggests that Perth’s rental market may be on the path to stabilisation, providing much-needed relief for those facing high rental costs.

Paulette Contessi

Director / Licensee

CONTESSI PROPERTIES