Perth has been named Australia's most unaffordable capital city for renters, according to a new report by SGS Economics and Planning. The Rental Affordability Index shows that average tenants in Perth now spend more than 30% of their income on rent, a threshold that was previously only recorded in Sydney. This marks a dramatic shift from before the pandemic, when Perth was considered the most affordable capital city by a large margin.
Rents in Perth have surged 43% over the past decade, from a weekly average of $440 to $630. In contrast, regional Western Australia saw a 13% increase. The report compares median rent prices with incomes of ten low-to-moderate-income household types, highlighting the growing financial strain on renters.
Housing advocacy group Shelter WA chair Kieran Wong described the trend as alarming and said it shows no signs of slowing. “There’s not just a single policy lever that’s driven it. There’s a number of competing and complex factors,” he said. Wong called for government intervention, including rental reforms and incentives for landlords to improve conditions.
The reality of Perth’s rental market was evident at a recent home open in Rivervale, where 30 people lined up to view a tiny one-bedroom apartment priced at $550 per week—nearly $200 more than four years ago. Tenant Michelle, who had four viewings that day, said, “It’s terrible. There’s like 30, 40, 50 people at each rental.” Another renter, 19-year-old Sebastian, noted that the prices were high for what was offered.
A separate report by Circle Green Community Legal, titled Make Renting Fair, surveyed hundreds of tenants over two years and found many West Australians endure poor living conditions due to fear of homelessness. Nearly two in five renters reported pest infestations, while almost three in five had leaks, dampness, or mould. More than half experienced electrical problems or issues with locks. Principal lawyer Alice Pennycott said, “We’re not just talking about inconvenience or being uncomfortable, it’s actually dangerous.” She added that renters are desperate to keep a roof over their heads and often put up with unsafe conditions because the alternative is homelessness.
