UPDATE: Perth has just been confirmed as Australia’s most unaffordable capital city for renters for the second consecutive year, according to the latest findings from the National Shelter Economics and Planning Rental Affordability Index. This alarming report reveals that rental affordability in Perth has plummeted by an additional 4%, leaving the median rent consuming a staggering 32% of an average rental household’s income.
This shocking statistic places Perth above both Sydney and Adelaide, which each sit at 30%. Just two years ago, in 2021, renters in Perth only allocated 21% of their income to cover rent. The dramatic reversal highlights a troubling trend that has escalated rapidly.
The situation extends beyond the city, with rental affordability in regional Western Australia also experiencing a severe decline. The region recorded its lowest level of affordability in over a decade, with a significant annual drop of 5% from the previous year. In 2020, households in regional WA found rents manageable at 19% of their income; now, they are classified as moderately unaffordable, consuming 28%.
Kath Snell, chief executive of Shelter WA, described the findings as “distressing, but unfortunately not surprising.” She emphasized the paradox of Australia’s wealthiest state grappling with the worst rental affordability, stating, “It’s mind-boggling that Australia’s wealthiest state has the worst affordability for renters.”
As the housing crisis deepens, many families and individuals are feeling the financial strain. The rapid increase in rental costs has left numerous renters scrambling to make ends meet, sparking urgent calls for policy changes and support to address the growing crisis.
Looking ahead, stakeholders and community leaders are advocating for immediate action from policymakers to alleviate the burden on renters. With the situation evolving, it is critical to monitor upcoming discussions and potential legislative proposals aimed at restoring balance to the rental market.
The implications of this report are profound, affecting not just individual households but the broader economy and community stability across the region. As Perth’s rental market faces unprecedented challenges, the need for solutions has never been more urgent.
