Perth rents have climbed to levels that would have seemed almost unimaginable a decade ago. And while growth has slowed from its peak, rents remain elevated, and in many suburbs, they’re still nudging higher.
So what’s actually driving it, and how long is it likely to last?
Three Reasons Perth Rents Are Still High
If you’ve been wondering why rents are holding firm, and in many pockets, still climbing it comes down to three things working together at the same time.
1. Population Growth Isn’t Slowing Down
Western Australia continues to attract people from interstate and overseas, driven by job opportunities in mining, resources, and infrastructure. More people moving here means more demand for rental housing. it’s pretty straightforward. And there’s no sign this is about to reverse. WA’s employment pull is likely to remain strong for years.
2. New Housing Supply Is Lagging
Building costs surged dramatically during and after the pandemic, up 30 – 40% in many categories, making new development far less financially viable. Construction timelines have also blown out significantly. The result: not enough new properties are coming to market to keep pace with demand. And that gap doesn’t close quickly. Even if approvals picked up tomorrow, it would take years for new supply to materially ease rental pressure.
3. First Home Buyers Are Still Renting
Many people who would ordinarily have purchased a home by now are still in the rental market. Perth house prices have risen sharply, interest rates remain elevated from their 2021 lows, and getting a deposit together is harder than ever. So “would-be” buyers renting for longer, keeping the pool of renters large and active.
| The bottom line: These are structural forces, not short-term blips. The supply-demand imbalance keeping Perth rents elevated will take years to resolve, which matters a great deal if you’re thinking about the medium-term outlook for your investment. |
What This Means for Perth Landlords
The current environment is still very favourable for Perth landlords. But the market has shifted enough that strategy matters more than it did two years ago.
- Presentation and pricing matter more than ever, tenants are slightly more selective now. Well-maintained, correctly priced properties still lease in one to two weeks. Overpriced ones are starting to sit longer.
- Time your rent review carefully, under WA’s updated tenancy laws, you can only increase rent once per year with 60 days notice. Miss the window and you’re locked in for another 12 months.
- Don’t let maintenance slide, good tenants have options. Losing a quality long-term tenant to an ignored maintenance issue will almost always cost more than fixing the problem.
| If your property is well-presented and priced appropriately for your area: You should be seeing strong enquiry and relatively quick leasing times. |
Want to Know What Your Property Is Worth?
We offer free, no-obligation rental appraisals for Perth landlords across all suburbs, a clear, evidence-based picture of what your property should be achieving in today’s market.
If you’d like a chat about your investment property, reach out to us for a no obligation
