The 2025-26 State Budget allocated funding for previously announced election promises, including stamp duty concessions for first home buyers, loans for modular housing and shared equity loans.
Housing affordability and accessibility
- $119 million to reduce stamp duty costs for first home buyers.
- $210 million for new Keystart initiatives including loan products for modular homes, apprentices and graduates, as well as an expanded shared equity scheme to support 1,000 loans for new apartments and townhouses.
REIWA President Suzanne Brown welcomed the increase to the thresholds for the First Home Buyer Rate of Duty, but said the Institute would like to see the thresholds pegged to REIWA's median and lower quartile prices to ensure they better reflect market conditions and ensure the concessions are available to as many first home buyers as possible.
"We have previously suggested the lower threshold, below which no duty is payable, should be pegged to REIWA's annual lower quartile," she said.
"The bottom 25 per cent of the market is the appropriate place to allocate the most support as this is the portion of the market where many first home buyers would be aiming to purchase a home. The upper threshold, above which no concession is payable, should be pegged to REIWA's annual median, which was $780,000 as at the end of May 2025.
"The thresholds should be reviewed regularly to ensure they remain appropriate to the market.
"Similarly, we would like to see the threshold for the $2,000 Home Buyers Assistance Account grant for first home buyers increased and linked to REIWA's annual median.
"We acknowledge the threshold was increased from $400,000 to $500,000 last December. However so far this year only 8.5 per cent of dwelling sales in Greater Perth were below $500,000* and only 16.5 per cent of those dwellings were houses.
"Linking the threshold to REIWA's median, as Keystart has done for its eligibility thresholds, would ensure as many first home buyers as possible remain eligible for the grant."
* Houses and units
The rental market
- The WA Rent Relief Program to support tenants facing hardship has been extended to 31 December 2025.
- $75 million has been allocated to the Build-to-Rent Kickstart Fund to provide low and no-interest loans for up to 10 years to assist in the delivery of Build-to-Rent projects. The fund will be administered by Keystart.
"There is a strong need for government investment in policies that will create more rental homes, particularly more affordable and social homes," Ms Brown said.
"Build-to-rent is an innovative solution that will create more rental supply but the current constraints in the building industry mean these projects are not cost-effective for investors. We commend the government's support in this space to help deliver these projects.
"We know this investment won't have an immediate impact on the market, but it is a move in the right direction and will help meet future demand as our population continues to grow."
Social housing
- $246 million for 548 additional social and affordable homes in partnership with community housing providers and the Federal Government's Housing Australia Future Fund.
- $177.4 million for the maintenance of social housing.
"The challenging housing conditions of the past few years have seen WA's social housing waitlist increase 38 per cent over five years to 20,700, according to the latest BCEC Housing Affordability Report," Ms Brown said.
"Our members have seen firsthand the toll the rental crisis has taken on the more vulnerable in our society and REIWA's 2025 State Election platform called for ongoing investment in social housing.
"We have welcomed the government's delivery of more social housing in the past couple of years, and their continued investment, but we support the call from organisations like Shelter WA and WACOSS for a greater commitment.
"At a minimum, the BCEC report recommended the delivery of 1,200 new or repurposed social housing dwellings per year."
Regional Housing
- $104 million has been allocated to double the Government Regional Officer Housing (GROH) construction program, aiming to deliver over 100 new homes in the regions over 2026-27 to 2028-29.
- $25 million over four years for the Regional Housing Support Fund, which will provide grants of up to $5 million to support new housing and land supply across regional WA to support regional subdivision, and providing additional support to key worker and community housing projects to boost the viability of regional Housing Projects.
- $43 million for 169 residential lots at Mulataga in Karratha, part-funded by the Federal Government.
"The current shortage of GROH has seen government departments look to the private rental market to house staff and this has placed an additional burden on regional rental markets that are already severely challenged," Ms Brown said.
"We welcome the investment in GROH but note these homes are needed now.
"Potentially the State Government could invest in modular housing itself to provide a solution for the regions more quickly."
Construction
With housing supply continuing to be a key issue for WA, the Budget also provided a range of support for construction.
- The first $101 million of the $400 Housing Enabling Infrastructure Fund to fund 21 projects in metropolitan Perth and key regional areas to provide about 33,000 new residential housing lots.
- $49 million to continue to expand the construction workforce including increasing the number of apprentices funded through the Group Training Organisation wage subsidy to 1,000 and making more construction TAFE courses free to train more tradespeople.
- $50 million for the Housing Innovation Fund to support alternative production methods, building materials and approaches that help building more houses faster.
"We welcome initiatives that may boost housing supply but also acknowledge there are many other factors that can impact the timely delivery of housing," Ms Brown said.
"While new wastewater plants and power substations are necessary infrastructure to make new land available for residential dwellings, currently issues with land titles are slowing the start of new home construction.
"At the other end of the build process, our colleagues in the building industry tell us energisation is a major issue and can significantly delay the handover of completed homes to clients.
"Meanwhile these clients have to rent longer, which impacts rental supply, or remain in their current home longer before they are able to sell."
Cost of living - housing
- $337 million for the State's Residential Battery Scheme. This complements the Federal Government's subsidy and is expected to provide cost of living relief to 100,000 households. As part of the scheme, households with an income of less than $210,000 will have access to no-interest loans, making savings through solar power more accessible.
"Rising electricity costs are placing pressure on many household budgets and REIWA welcomes the opportunity for more people, particularly lower-income households, to have affordable access to solar power," Ms Brown said.
"We also welcome the focus on renewable energy."
State Government housing market forecast
The State Government forecasts Perth's median house price to increase by 18 per cent in 2024-25, dropping to 4.3 per cent in 2025-26 as population growth slows and new home completions increase.
WA's population increased 2.4 per cent in the year to December 2024. The government is estimating growth of 1.9 per cent for 2024-25 and 1.8 per cent for 2025-26.
Building completions rose 18 per cent in 2024 to over 20,600, the highest level in seven years.
With housing approvals rising 45 per cent to 23,000, the strongest in the nation, completions are expected to increase further over the coming year.
