Perth's Housing Boom: What Happens Next and the Key Decisions Ahead

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 a strong resources economy and immigration, is putting a strain on the city's infrastructure and pricing out many would-be buyers. The state's budget surplus, expected to reach $2.5 billion by the end of the financial year, provides an opportunity for the government to invest in initiatives that address housing affordability.

In Perth, the impact of the housing boom is being felt in suburbs like Scarborough and Fremantle, where property prices have increased by over 20% in the past year. Organisations like the University of Western Australia and Curtin University are also feeling the pinch, as they struggle to provide affordable accommodation for students. The Metronet rail expansion, which includes new stations in areas like Bayswater and Forrestfield, is expected to further drive up property prices in these suburbs.

Key Statistics and Trends

According to data from the Real Estate Institute of Western Australia, the median rent in Perth has increased by 15% in the past 12 months, to $450 per week. Meanwhile, the Australian Bureau of Statistics reports that the number of dwelling approvals in Western Australia has increased by 25% in the past year, to over 22,000. However, this increase in supply has not kept pace with demand, and the state's housing shortage is expected to persist. As of June 2026, the average price of a house in the Perth suburb of Cottesloe was $1.2 million, up from $900,000 just 12 months earlier.

Looking ahead, the key decisions for policymakers will be how to balance the need for increased housing supply with the need to protect the city's character and environment. The state government's Indian Ocean Strategy, which aims to promote economic growth and development in the region, will also play a crucial role in shaping the city's future. Practical steps that buyers and renters can take include exploring options like shared equity schemes and community land trusts, which can provide more affordable pathways to homeownership. As the city continues to grow and evolve, it is essential that policymakers prioritize the needs of all members of the community, and work towards creating a more sustainable and equitable housing market.