Median Perth rent has risen by $320 per week since 2020 to $740 per week by December 2024, a transformation so rapid that Perth has shifted from Australia's most affordable capital city just a few years ago to the most expensive, overtaking Sydney. For renters, the numbers tell a stark story: the Sydney median now sits around $817 per week for houses, but Perth's shift from affordable to crisis-level has compressed faster than any other Australian city.
The numbers themselves deserve scrutiny. Rising costs have added up to $100,000 to a typical new home over four years, while construction delays have doubled average build times to 15.6 months. These supply-side constraints created a vicious cycle: when landlords cannot find alternatives, rental vacancy rates collapsed. The number of available rentals under $350 per week has dropped by 82 per cent, locking vulnerable renters out of their own city.
Yet recent data suggests the acute phase may be easing. Vacancy rates went from very low levels in 2023–2024 to about 2.5% in March 2025, a significant psychological threshold last seen in 2019. Perth's rent growth eased from 8.1% in 2024 to 5.9% in 2025, and predicted annual rent growth for 2025–2026 is between mid-3% and mid-4%, suggesting rents will continue to rise at a slower, more sustainable rate.
The counterargument is sobering. Supply figures are still falling short of demand, which will continue to keep upwards pressure on rental and property prices. Industry groups warn supply still falls short of demand and the Federal Government's Housing Accord target of 25,000 new homes per year for five years. Even with urgent action, relief is at least 12 to 18 months away, with rental costs unlikely to stabilise until 2026.
Perth's rental crisis reflects genuine supply shortage, not speculation or market dysfunction. Housing commencements have risen 40%, with 16,400 commencements in the past year compared to 11,700 the prior year, and completions rose 15% to 17,600, but these supply figures are still falling short of demand. The city is building more homes than it has in years; it is simply not building fast enough.
The emerging stability in rental growth, while welcome, should not be mistaken for resolution. Affordability remains severely stretched, and rents remain at historic highs. But the direction of travel has shifted. After years of relentless acceleration, Perth's rental crisis is entering a plateau. Whether that becomes a genuine stabilisation or merely a slower climb depends entirely on whether construction can finally match demographic reality.