Perth's rental market has reached a grim new milestone, officially becoming the second most expensive capital city in Australia for tenants. New data reveals a relentless surge in prices that has pushed the Western Australian capital past Sydney and Brisbane, leaving only Canberra more costly for renters.
A Market in Overdrive: The Numbers Behind the Crisis
The latest figures from property analytics firm CoreLogic paint a stark picture. The median weekly rent for a dwelling in Perth has skyrocketed to $681. This represents a staggering 13.3 per cent increase over the past year alone. The city's rental growth isn't slowing down either, with a further 1.8 per cent rise recorded in just the month of April.
This explosive growth has fundamentally reshaped the national rental landscape. Perth has now leapfrogged both Sydney, where the median rent sits at $670, and Brisbane at $630. The only capital city with a higher median rent is Canberra at $651. The data underscores a profound shift, with Perth's rental costs now 8.4 per cent higher than Sydney's and a massive 17.9 per cent above Brisbane's.
Unit vs. House: A Dual-Speed Squeeze
The rental pain is being felt across all property types, but the pressure is most intense in the unit market. The median rent for a Perth unit has hit $595 per week, marking an extraordinary 18.5 per cent annual increase. This growth rate is more than double the national average for units, which stands at 8.9 per cent.
For houses, the situation remains severely strained. The median house rent in Perth is now $717 per week, having climbed 11.8 per cent over the past twelve months. This relentless upward trajectory shows no signs of abating, placing immense financial pressure on households.
The Domino Effect: Vacancy Rates and Future Projections
The primary driver of this crisis remains a critical shortage of available properties. Perth's rental vacancy rate is clinging to an ultra-tight 0.6 per cent, a figure that indicates an extreme imbalance between supply and demand. With so few options available, competition among tenants is fierce, allowing landlords to command higher prices.
CoreLogic's research director, Tim Lawless, provided a sobering analysis of the situation. He noted that Perth, along with Adelaide and Brisbane, has seen the most significant decline in rental affordability over recent years. "Perth rents have increased by a cumulative 55.6 per cent since the pandemic low in August 2020," Mr Lawless stated. This dramatic rise far outpaces income growth, squeezing household budgets to breaking point.
Looking ahead, the outlook offers little immediate relief for renters. Market analysts predict that rental growth, while potentially moderating from its current blistering pace, will continue throughout 2024. The fundamental issue of insufficient housing supply to meet robust demand, fueled by strong interstate and overseas migration to Western Australia, is a problem with no quick fix.
The consequences of this market shift are wide-ranging. For residents, it means less disposable income, reduced ability to save for a home deposit, and increased anxiety over housing security. For the city, it poses challenges related to workforce mobility, social equity, and overall liveability. Perth's ascent to the unwanted title of Australia's second most expensive rental city is a clear signal that the state's housing crisis has entered a new and more severe phase.
