Perth has been identified as one of the most challenging cities in the world to find a rental property, with a staggering vacancy rate of only 0.4 percent. This data, compiled from national and international sources, highlights the dire situation in Perth when compared to other major cities globally.
Among the cities analyzed, Perth has the lowest vacancy rate, even beating out cities like Berlin, Sydney, Toronto, and Auckland. The housing shortage in Perth is exacerbated by a lack of supply, with available rental properties being quickly snatched up by eager tenants.
Experts, like Strategic Property Group managing director Trent Fleskens, emphasize the urgent need for more housing supply in Perth. However, the construction industry’s ability to meet this demand seems to be a distant prospect. Despite not having geographical constraints that limit construction, Perth continues to struggle with a severe housing crisis.
The population boom in Western Australia, with nearly 79,000 new interstate and overseas arrivals in a year, has added to the housing pressure. Sustainable Population Australia president Peter Strachan points out that the state needs significantly more dwellings to accommodate the growing population, far surpassing current building approval trends.
To address the housing crisis, the state government is offering incentives to AirBnB owners to rent their properties to long-term tenants. While this initiative has been embraced by some, the opposition criticizes the government’s handling of the housing shortage, calling for more substantial action.
Despite the challenges, there are some positive signs in the rental market, with Perth’s median rents stabilizing and new supply entering the market, particularly in the northern corridor. However, affordable housing remains highly competitive, indicating that the housing crisis is far from over.
As the state grapples with a housing shortage and soaring rental rates, it is evident that a multi-faceted approach is needed to address these challenges effectively. By balancing population growth, housing supply, and government intervention, Perth may gradually ease the pressure on its rental market and provide more accessible housing options for its residents.