As Perth’s rental market continues to evolve in 2025, renters are facing both challenges and opportunities. With rental demand still high and vacancy rates remaining tight across many suburbs, being well-prepared and informed can make all the difference in securing a quality home.
Market Snapshot
Perth’s rental prices have remained relatively stable in early 2025, following the rapid increases of the past few years. Suburbs like Wanneroo, Balcatta and Morley continue to offer good value for families, while inner-city areas like East Perth and Leederville appeal to professionals seeking a vibrant lifestyle. Flexibility and fast decision-making are essential as competition remains strong.
What’s Behind the Rental Crisis in Perth?
The Perth rental crisis is a result of the combination of the economic landscape and government policies regarding leasing property. Here’s a deeper dive:
Economic Factors
WA continues to enjoy strong economic performance, largely driven by its booming mining and resources sector. In 2024, the industry contributed over $210 billion to the state economy, helping keep the unemployment rate below 4%. These economic strengths have attracted more workers and families to the state, particularly Perth.
In 2024, WA’s population grew by approximately 3.1%, and early 2025 data suggests the trend is continuing. This growth adds pressure on an already undersupplied rental market. With delays in new home construction due to supply chain issues and labour shortages, more residents are forced into the rental pool—driving vacancy rates even lower (currently sitting at just 0.6%).
Increased demand, limited supply, and greater competition are pushing rents to record highs, with Perth’s median weekly rent for houses now over $650, a rise of nearly 20% year-on-year.
Rental Legislation in WA
WA still has no cap on rental increases, although there are specific rules in place:
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Periodic leases: Rent can be increased every 6 months with at least 60 days’ written notice.
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Fixed-term leases: Rent cannot be increased during the term unless the increase clause is specified in the lease agreement.
While these rules provide some structure, they still leave room for significant rent hikes in a competitive market. Landlords may adjust rents to match rising property expenses, interest rates, or simply to meet market rates.
Surviving the Perth Rental Crisis 2025: A Renter’s Guide
Navigating the rental market in 2025 is tough—but not impossible. Here are a few practical tips:
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Stay Put If You Can
If you have a rental and can manage the cost, avoid moving. With ultra-low vacancy and steep competition, securing a new place can be extremely difficult. -
Talk to your Landlord/Property Manager
Many landlords would rather keep reliable tenants than search for new ones. Open communication might help you negotiate a fair rent or lease renewal terms. -
Know Your Rights
If you believe a rent increase is excessive, you can apply to the Magistrates Court for review. However, this should be balanced with maintaining a respectful landlord-tenant relationship. -
Apply for Financial Help if Needed
The WA Government’s Rent Relief Program continues to provide assistance for tenants in arrears, including one-off payments and negotiation support.
Thinking of Investing? Perth’s Rental Market in 2025
For investors, Perth’s rental crisis presents both risk and opportunity:
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High Demand Means Less Vacancy
Properties are leasing faster than ever, often with multiple applicants. This ensures reliable rental income, but also creates pressure to maintain ethical pricing. -
Watch Interest Rates
As interest rates remain elevated in 2025, they’re squeezing investor margins. Thorough financial planning is essential. -
Be Fair, Be Competitive
Charging fair market rent can help attract long-term tenants. Not sure how to price your property? Our experienced property management team at AB Realty can help.
What’s Next for Perth’s Rental Market?
The outlook for 2025 remains tight. Construction pipelines are still catching up from pandemic-era delays and workforce shortages. Although more land is being released for development, many new builds won’t be completed until late 2026 or beyond.
As population growth continues and housing supply lags, Perth’s rental crisis is likely to persist in the short to medium term. For renters and investors alike, staying informed, being proactive, and seeking professional support can make all the difference in this challenging market.
Need help navigating the rental market? Whether you’re a tenant, investor, or landlord—AB Realty is here to guide you.
Read our other articles for further information:
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