You may have heard that the rental market across Western Australia has been under pressure due to the lack of supply in recent months.

In November this was no different, with reiwa.com data revealing there were only 2,889 properties available for rent on reiwa.com which is 52 per cent less than November 2019 – making it the third consecutive month in a row in which listings were under 3,000.

Due to the limited number of rentals available it has created upward pressure on rents and in November the Perth median weekly rent price increased $10 to $390 per week. Breaking it down into houses and units, the median house price is $400 per week and the median unit price is $360 per week.

Over the last few years, until recently the overall median weekly rent has remained stable and Perth has been the most affordable capital city to rent in across the nation for over three years now.

Housing Affordability Report

According to the Real Estate Institute of Australia’s Housing Affordability Report (September 2020 quarter), WA still retains the title for the most affordable with the proportion of family income required to meet the median rent sitting at 17 per cent.

While this has slightly increased by 0.9 per cent when compared to the June 2020 quarter, WA is still performing quite well compared to the other states, with the Australian Capital Territory the second most affordable at 19.1 per cent.

Compared to our East Coast counterparts, WA is substantially below, with Victoria decreasing 0.1 per cent over the quarter to 22.4 per cent, Queensland increased 0.1 per cent to 21.6 per cent and New South Wales increased 0.9 per cent to 28.4 per cent.

What we could expect in 2021

Looking ahead, we can expect rents to increase throughout 2021 due to supply and demand factors, however we anticipate they will still not be at the same levels they were during the boom (over $450 per week) and it is likely not reach a percentage as high as some of the East Coast states and territories.

Source: reiwa.com.au