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Perth Housing Boom Forces Critical Policy Decisions on Affordability
As the city grapples with a surge in demand, policymakers must make crucial choices to ensure affordable and sustainable growth
How we reported this
The Western Australian government is facing mounting pressure to address the state's housing affordability crisis, with the median house price in Perth now exceeding $650,000.
This issue matters now because the current surge in demand, driven by the state's strong resources economy and immigration, is putting a strain on the city's infrastructure and affordability. The WA Labor government has committed to increasing the supply of housing, but the challenge lies in balancing this with the need to preserve the character of established neighbourhoods like Subiaco and Fremantle.
In Perth, the impact of the housing boom is being felt in areas like Elizabeth Quay, where new developments are transforming the waterfront, and in suburbs like Scarborough, where the local council is working to ensure that growth is managed sustainably. Organisations like the University of Western Australia and Curtin University are also playing a crucial role in shaping the city's future, with initiatives like the UWA's Urban Planning program and Curtin's Sustainable Housing project.
According to data from the Real Estate Institute of Western Australia, the state's population is projected to grow by 14% over the next five years, putting additional pressure on the housing market. In June 2026, the median rent for a three-bedroom house in Perth was $520 per week, up 10% from the same time last year. The state government has announced plans to invest $400 million in affordable housing initiatives, including the construction of 1,300 new homes in areas like Ellenbrook and Jandakot.
Key Decisions Ahead
As policymakers look to the future, they will need to make key decisions about how to manage the city's growth, including the development of the Metronet rail expansion and the implementation of the Indian Ocean Strategy. The City of Perth has announced plans to increase density along transport corridors, such as the Mitchell Freeway and the Kwinana Freeway, but this will require careful planning to ensure that new developments are integrated with existing communities.
In practical terms, this means that residents and businesses will need to be engaged in the planning process, and that policymakers will need to balance competing interests and priorities. The state government has established a Housing Affordability Taskforce, which will provide recommendations on how to address the crisis, and the City of Perth is developing a new Local Planning Strategy, which will guide development in the city over the next 10 years. As the city looks to the future, it is clear that the decisions made now will have a lasting impact on the shape and character of Perth.