Housing Affordability in Western Australia 2025: A long way from home

Housing has emerged as one of the most urgent and complex challenges facing Western Australia.

From surging rents to escalating house prices, the state’s housing market is being stretched to its limits, placing acute pressure on households, communities and service providers alike.

The issue is not simply one of affordability, but of access, equity and sustainability. Wherever you turn, the signs of a housing system under strain are impossible to ignore.

This latest Housing Affordability in Western Australia 2025 report provides a comprehensive and evidence-based response to WA’s housing situation, offering critical insights into homelessness and housing needs.

It provides a fresh analysis of the supply and demand dynamics and the changing geography of WA’s rental stock supply, bringing new data to understand better the real cost pressures and housing circumstances faced by families across the country.

The report highlights that WA’s housing market is not keeping pace with the state’s record population growth. While completions have reached a seven-year high, the shortfall remains in the thousands, tightening supply, driving up costs, and locking out a growing number of people from home ownership or secure rental.

For renters, especially those on low incomes or in single-parent households, the challenge is acute.

And homelessness is becoming both more entrenched and more widespread, with rising demand from women, older people, and even those in full-time work.

Interactive maps

Building approvals by postcode 2017-2024 – Perth Metro (zoom to other Australian regions)

Mortgage serviceability for key workers – Perth Metro

Median house price 2017-2025 – Australia-wide

Short-term rental accommodation counts and shares by LGA – WA, August 2025

Key Findings

WA Housing Market Trends

•  WA’s population grew 4.2% since March 2023, with 85% of growth in Greater Perth.
• More than 20,000 homes were completed – the highest since 2017- but at least 4,000 short of annual need.
• Construction delays have doubled average build times to 15.6 months.
• Rising costs have added up to $100,000 to a typical new home over four years.
• The median house price in Perth hit $851,000, outpacing income growth.
• First home buyers are losing ground, while investor activity rises.
• Housing approvals are mostly in outer suburbs, not high-demand inner areas.

WA Rental Market Insights

• Median Perth rent rose by $320/week since 2020 to $740/week by December 2024.
• 14% rent increase in 2024 alone; rental vacancy rate was under 1% for two years.
• Just 694 rental dwellings were added in 18 months, while the population rose by 119,000.
• Perth is 7,700 rentals short of meeting population growth-led demand.
• Affordable rentals under $350/week have dropped 82% since 2020.
• Rental listings in inner suburbs are declining, pushing people to outer growth areas.
• Key workers and low-income earners struggle to access well-located, affordable rentals.

Housing Conditions

• 210,000 WA households now view their housing as unaffordable (up 100,000 since 2022).
• Only 39% of renters and 48% of mortgage holders find costs affordable.
• Renters face worse housing conditions: one in five report damp, more than half report wall/ceiling cracks.
• Just 17.5% of renters have solar access versus 55% of owners.
• Younger people, renters and one-parent families fare the worst.
• Poor housing linked to poor mental (41.4%) and physical (43%) health.
• Only 64% of WA residents rate their housing condition as good – second lowest in Australia.

Homelessness in Western Australia

• Homelessness has risen 8% since 2016, with rough sleeping up 114%.
• Specialist homelessness services (SHS) clients rose to nearly 25,000 in 2023-24.
• Women make up 66% of clients, with a 31% increase since 2011-12.
• Family violence is the top reason for homelessness (47% of cases).
• Older people (55+) make up nearly 1 in 5 of WA’s homeless.
• First Nations SHS clients increased 85% since 2011.
• WA’s social housing waitlist has risen to nearly 20,700, a 38% increase in five years.
• The priority social housing waitlist has grown 330% from 1,462 in 2018 to 6,300 in 2024.
• Homelessness among working people is rising – 1 in 10 clients now employed.