Perth renters are bracing for a significant financial hit, with new data projecting the average tenant will need to find an extra $2200 in 2025 compared to the year before. This sharp increase underscores the deepening rental crisis gripping Western Australia's capital.
PropTrack Report Paints a Grim Picture
The sobering forecast comes from the latest PropTrack Market Insight Report. It reveals that Perth's median weekly advertised rent is expected to climb to $750 by the end of 2025. This marks a substantial jump from the $700 per week median recorded at the close of 2023, and a staggering rise from the $500 per week seen just three years prior in 2021.
PropTrack's director of economic research, Cameron Kusher, provided the analysis, stating the data points to a continued upward trajectory for rental prices. The report attributes the relentless increases to a fundamental and severe imbalance between supply and demand, a problem with no immediate solution in sight.
A Market Stretched to Its Limits
The pressure on Perth's rental market is unprecedented. The vacancy rate has plummeted to a record low of 0.7 per cent, creating an intensely competitive environment for anyone seeking a home. This scarcity of available properties is the primary driver forcing rents to new heights.
Kusher explained that while the rate of rental growth might slow from the extreme peaks witnessed recently, prices are still firmly on an upward path. "We're forecasting that rents are going to continue to increase," he confirmed, dashing hopes for any near-term relief for tenants.
Broader Implications for Perth and Beyond
The crisis extends beyond just rising weekly costs. The cumulative financial impact on households is severe, with the projected $2200 annual increase equating to a major strain on family budgets. This situation threatens to exacerbate rental affordability issues and could push more residents towards financial stress.
The PropTrack report serves as a stark warning for policymakers, real estate stakeholders, and the community. It highlights a systemic issue where demand for rental properties vastly outstrips supply, a trend solidified over recent years and now cementing into the market's long-term outlook.
For Perth, a city once considered more affordable than its eastern counterparts, the data signals a permanent shift. The rental market of 2021, with its $500 median, is now a distant memory, replaced by a high-cost environment that shows little sign of abating as we move toward 2025.
