Perth's Housing Boom: What Officials, Experts, and Key Figures Are Saying

Perth is experiencing a significant surge in housing demand, driven by the state's booming resources economy and major defence contracts, including the AUKUS deal and the expansion of the Stirling Naval Base.

This trend matters now because it is putting pressure on the city's housing market, with prices rising rapidly in popular suburbs like Subiaco and Fremantle. The WA Labor government has announced plans to increase housing supply, including the development of new estates in areas like Ellenbrook and Byford, but experts warn that more needs to be done to address the shortage of affordable housing options.

In Perth, the impact of the housing boom is being felt in specific neighbourhoods, with areas like Leederville and Mount Lawley experiencing rapid gentrification. Organisations like the City of Perth and the Western Australian Planning Commission are working to balance the need for new development with the need to preserve the city's character and community. The Metronet rail expansion, which includes new stations in suburbs like Bayswater and Forrestfield, is also expected to drive growth and development in these areas.

Understanding the Data

According to data from the Real Estate Institute of Western Australia, the median house price in Perth has risen by 15% in the past year, to $640,000. The rental market is also feeling the squeeze, with the vacancy rate falling to just 1.2% in the June quarter. This is having a major impact on renters, with the average rent for a three-bedroom house in Perth now standing at $520 per week. As of June 2026, the state government has announced plans to invest $400 million in affordable housing initiatives, including the construction of new social housing units and the provision of rental subsidies for low-income households.

So what happens next? Experts say that the key to addressing the housing shortage will be to increase supply, while also providing support for those who are struggling to afford housing. This could include initiatives like inclusionary zoning, which requires developers to include a certain percentage of affordable housing units in new developments. The City of Perth is also exploring options for increasing density in existing suburbs, while preserving the city's character and community. As the situation continues to evolve, it will be important for officials, experts, and key figures to work together to find solutions that meet the needs of all members of the community.