Perth's Unyielding Rental Crisis: Landlords Hike Rents as Tenants Face Eviction Wave

A modest three-bedroom house in Morley that rented for $550 a week this time last year is now being advertised for $700, with the agent requesting six months' rent in advance. This is the new reality across Perth, where a chronic shortage of housing has pushed the rental market to a breaking point, creating a desperate scramble for tenants and empowering landlords to set ever-harsher terms.

The pressure has been building for years. A potent combination of surging interstate and international migration, fueled by Western Australia's robust mining and resources sector, has collided with a construction industry hampered by labour shortages and supply chain delays since the pandemic. The result is a severe imbalance: too many people chasing far too few homes. For thousands of families, the stability of a long-term lease has been replaced by the constant anxiety of a rent review or a 'no-grounds' termination notice landing in their inbox.

Bidding Wars and Desperation from Baldivis to Butler

The frontline of this crisis is the weekend home open. In growth corridors like Baldivis in the south and Butler in the north, it’s now common to see dozens of hopeful tenants queuing down the street, application forms in hand. Many offer to pay more than the advertised price or prepay months of rent just to get an edge. Support services are feeling the strain directly. Tenancy WA, the state’s specialist community legal centre for tenants, reports a sustained surge in calls regarding significant rent increases and terminations, with many tenants unaware of their limited rights under the current Residential Tenancies Act.

The numbers paint a stark picture. According to the latest data from the Real Estate Institute of Western Australia (REIWA), Perth’s median residential rent hit $720 per week in June 2026. The city-wide vacancy rate remains critically low at 0.7 percent, a figure that has barely budged for more than two years. Anything below 2.5 percent is considered a landlord’s market; the current conditions represent an extreme squeeze not seen in a generation. This environment has allowed for rapid rent inflation, with the median figure rising nearly 18 percent since mid-2025 alone.

Landlords Balance Costs as Government Scrambles for Solutions

While tenants bear the brunt, property owners also point to their own financial pressures. A series of interest rate hikes from the Reserve Bank of Australia through 2024 and 2025 has significantly increased mortgage repayments for investors. Compounded by rising council rates and soaring insurance premiums, many landlords argue that rent increases are necessary simply to cover their escalating costs. Some are choosing to exit the market altogether, selling their investment properties to owner-occupiers, which further shrinks the already-dwindling pool of available rental stock.

The Cook Government has attempted to address the supply side of the equation. Planning reforms aim to fast-track medium- and high-density developments, particularly around key transport hubs like the new Morley and Ellenbrook train stations built under the Metronet project. However, these projects have long lead times and offer little immediate relief to a family facing homelessness next month. With the state's social housing waitlist stretching into the tens of thousands, and emergency accommodation services like Entrypoint Perth consistently at capacity, there is no simple fix. Without a sudden and massive injection of new housing, Perth’s tenants are likely to face more rent pain and uncertainty for the foreseeable future.

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.