Perth's Sub-1% Vacancy Rate Reshapes Rental Market for Tenants, Landlords

Perth's rental market is experiencing unprecedented demand, with the city's vacancy rate sitting at a record low of 0.7%. This has resulted in a highly competitive environment for tenants, who are often forced to apply for multiple properties in the hopes of securing a lease.

The current state of the rental market matters now because it has significant implications for both tenants and landlords. For tenants, the low vacancy rate means they have limited options and may be forced to pay higher rents or compromise on their desired location or property type. For landlords, the high demand means they can command higher rents and have a wider range of potential tenants to choose from.

Local Impact

In areas like Joondalup and Wanneroo, which are experiencing rapid growth and development, the rental market is particularly tight. Properties in streets like Grand Boulevard in Joondalup and Wanneroo Road in Wanneroo are in high demand, with many tenants competing for a limited number of available rentals. Organisations like the Real Estate Institute of Western Australia (REIWA) and the Department of Communities are working to address the issue, with initiatives like the WA Housing Strategy aiming to increase the supply of affordable housing in Perth.

According to data from REIWA, the median rent in Perth is currently around $450 per week, with some areas like the CBD and inner suburbs commanding much higher prices. For example, a two-bedroom apartment in a complex like the Perth City Link can cost upwards of $600 per week. As of June 2026, the average rent for a three-bedroom house in the Perth metropolitan area is $520 per week, up 10% from the same time last year.

What's Next?

So what does this mean for tenants and landlords in Perth? For tenants, it's essential to be prepared to act quickly when applying for a rental property, and to be flexible with their expectations. They should also be aware of their rights and responsibilities as a tenant, and seek advice from organisations like the Department of Communities if needed. For landlords, it's crucial to ensure they are complying with all relevant laws and regulations, and to consider working with a property manager to help navigate the complex rental market. As the WA Housing Strategy continues to roll out, it will be interesting to see how the rental market responds, and whether the supply of affordable housing in Perth can meet the growing demand.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.