First-homebuyers in Perth face a grim outlook as industry leaders predict the city's median house price could reach $1 million by the end of 2026. Just seven years ago, the median was under $500,000, but Cotality data now shows it at $940,635, the third highest in Australia behind Sydney and Brisbane.
Perth's annual growth rate was 15.9% in 2025, adding over $100,000 to the median price. While growth is expected to slow in 2026, experts forecast a further 10% increase or more, pushing values past the million-dollar mark. Canstar's Sally Tindall warned the median could hit $1.1 million by end of 2027, a rise of $142,000 in 24 months.
Cotality research director Tim Lawless noted that entry-level properties are seeing the strongest price rises, frustrating first-homebuyers. REIWA president Suzanne Brown highlighted affordability and supply as key challenges for 2026, with sustained strong growth making home ownership increasingly difficult.
Interest rate hikes are also predicted for 2026 due to high inflation, adding to the burden. Tindall cautioned against taking on unmanageable debt, warning that the dream home could become a financial nightmare. The federal Home Guarantee Scheme has helped some, but experts say it has also pushed prices higher.
First-homebuyers also face hefty stamp-duty costs. The Cook Government offers stamp-duty exemptions for properties under $700,000, but REIWA argues this threshold must rise in line with soaring prices. Calls are growing for more assistance in the upcoming May State Budget.
