In Western Australia, the rapid population growth fueled by immigration has led to a dire housing shortage, with an annual shortfall of around 13,000 dwelling units, leaving approximately 32,000 people living in makeshift accommodation. Despite a significant increase in housing construction over the past 15 years, the number of new arrivals would require 31,500 additional dwellings, far exceeding the trend of 8600 house building approvals. The state government is offering support to those impacted by the tight private rental market, including offering AirBnB owners $10,000 to rent to long-term tenants, with 198 owners accepting the offer so far.
The federal government has already reduced Australia’s migrant intake, which is expected to ease some of the population pressures in WA. However, it is crucial to strike a balance between managing population growth and ensuring access to skilled labor for the growing economy. Despite government efforts, WA Liberal leader Libby Mettam criticized the state government for its handling of the housing crisis, pointing out that only 114 homes were added to the net total of social housing in the first seven years of Labor’s time in power. Mettam expressed concerns about the government’s ability to address the housing shortage effectively.
The latest CoreLogic data shows a 13.9% annual increase in rental rates in WA, the highest in the nation. Despite this, there are signs that the rental market is slowly easing, as Perth’s median rents have remained unchanged at $650 per week for two consecutive months. Some new supply is entering the market, particularly in the northern corridor, and tenants are starting to move into homes they have built, freeing up some established supply. However, there is still strong competition for more affordable homes, indicating that the housing crisis is far from over.
REIWA chief executive Cath Hart emphasized the importance of continuing efforts to address the housing shortage and support those in need of accommodation. She noted that while there are positive signs in the rental market, such as stable median rents and new supply coming onto the market, there is still a high demand for affordable housing. Hart urged for ongoing support and solutions to ensure that all residents have access to safe and adequate housing. Overall, the housing crisis in WA highlights the need for a comprehensive approach to address population growth, housing construction, and affordability issues in the state.
