Perth Tops Rent Charts, WA Affordability Plummets

Perth has retained its position as Australia's most unaffordable capital for renters, while regional WA saw the steepest decline in affordability in the country, according to a new report.

The 11th annual National Shelter-SGS Economics and Planning Rental Affordability Index, which compares median rents to average incomes, found Perth is more unaffordable than Sydney for a second straight year. Among Australia's capital cities, Perth had the largest drop in affordability, down a further 4% from last year's record low.

The Rental Affordability Index now includes Housing All Australians as a key partner, reflecting the critical role of business and public-private partnerships in addressing the nation's housing crisis.

The Index found Perth's median rent now consumes 32% of an average rental household's income. This is up from 21% in 2020, and currently higher than Sydney and Adelaide at 30%.

Meanwhile, rental affordability in regional WA has crashed to its lowest level in more than a decade. Regional WA saw the steepest annual drop in affordability compared to all capital cities and regions, down a further 5% from last year.

In 2020, rents in regional WA were 'Affordable', taking 19% of an average rental household's income - now they are 'Moderately Unaffordable', consuming 28% of income.

Shelter WA CEO Kath Snell said: "What this report tells us is distressing, but unfortunately not surprising. We have been seeing for some time the impacts of continuous rent hikes across our member organisations.

"It's mind boggling that Australia's wealthiest state has the worst affordability for renters. Just a few years ago, Perth was Australia's most affordable capital city - now it is the most expensive, overtaking Sydney.

"This housing crisis is no longer confined to those on the lowest incomes, it's climbing the ladder affecting working families. In Perth, the average renter is now spending more than 30% of their income on the median rent, effectively plunging them into housing stress.

"The WA Government is making progress but we need ambition that matches the scale of the crisis; that means an additional 5,000 social and affordable homes per year, capping rents, reining in short-stay rentals, ending no grounds evictions, and improving minimum standards."

The Index classified rent for single JobSeekers and single pensioners as 'Critically Unaffordable' in Perth and regional WA, and 'Extremely Unaffordable' for single parents working part-time.

For a full-time hospitality worker, rents are 'Extremely Unaffordable' in Perth chewing up half of their income, and 'Severely Unaffordable' in regional WA taking 44%.

The Index found Perth's entire metropolitan area is 'Moderately' to 'Severely Unaffordable', with the coastal and central suburbs experiencing the worst affordability. Just two years ago, several corridors were deemed 'Acceptable' affordability.

For regional WA, there is significant variation with affordability levels ranging from 'Acceptable' to 'Severely Unaffordable' across the state. Affordability is worst in the north from Exmouth to Broome, with rents ranging from 'Unaffordable' to 'Severely Unaffordable'.

SGS Economics & Planning Principal Ellen Witte said: "Perth's rental market has shifted from steady to spiralling. In the three years before COVID, median rents rose by just 1% a year, but over the three years since, they've surged by around 14% a year.

"Since 2020, rents in Perth have climbed by more than 90%, completely erasing the affordability gains made in previous years. Regional WA tells a similar story, once considered 'Affordable' in 2020, it has since slipped sharply, with rents now considered 'Moderately Unaffordable'."

Robert Pradolin, Founder & Executive Director of Housing All Australians, which has recently become a partner in the Affordability Index, said the rental crisis was having a major negative impact on WA's economy and communities.

"From cafes and hotels to hospitals and childcare centres, businesses across WA are struggling to find staff because there's nowhere affordable for them to live nearby. Even WA's community services sector – the very people supporting our most vulnerable – can't recruit or retain staff because workers can't afford to live in the regional communities they serve," he said.

"Housing that people can afford is absolutely critical economic infrastructure and without it our prosperity is being held back. Governments can't fill our housing shortfall on their own and so innovative public-private partnerships will continue to be absolutely vital."

Metropolitan areas

Rest of the state areas

Greater Perth

Rest of WA