Western Australia Rents Surge 66%, Triples Wage Growth

Perth - Western Australia has emerged as the epicentre of Australia’s rental crisis, new industry data has revealed, prompting advocacy groups to renew urgent calls for the state government to implement rent caps.

Figures released this week on Wednesday, February 11, 2025, by data provider Cotality, show that rents in Western Australia (WA) have surged by 66% over the last five years.

The increase has vastly outpaced wage growth in the state, which rose by just 18.5% over the same period.

The WA Make Renting Fair Alliance and advocacy body, Shelter WA, said the disparity has left tenants with virtually no bargaining power in a market where vacancy rates remain at historic lows.

"Western Australia is at the epicentre of Australia’s rental crunch," said Kath Snell, Chief Executive Officer of Shelter WA and Spokesperson for Make Renting Fair.

 "Western Australians are being forced to accept higher rents which is leading to homelessness, severe housing stress and overcrowding," she said.

The data highlighted a particular strain in regional areas, where annual rents rose by 10.1% in the year to January 2026, the highest increase in the country.

In the state capital, Perth, rents climbed 6.2%, exceeding the national average increase of 5.4%.

Advocates point to the Australian Capital Territory (ACT) as a successful alternative model.

The ACT is currently the only Australian market where rent and wage growth remain aligned, a result the Alliance attributes to the territory's existing rent control measures.

In letters sent to state Members of Parliament this week, the Alliance urged lawmakers to back rent stabilisation measures.

Proposed policies include capping annual rent increases to the rate of inflation or a specific fixed percentage.

"We need the right housing supply in the right places for the people who are doing it tough," Snell said.

"But while we are waiting for these desperately needed long-term affordable homes, we need a cap on rents to stop the worst impacts right now," she said.

The state government has previously resisted rent caps, instead focusing on supply-side measures and recent reforms that limited rent increases to once every 12 months.

The Alliance however argues that these measures have failed to curb runaway rents.

A recent report by the group shows that WA renters are now paying an average of nearly A$20,000 (US$13,100) more per year in rent compared to four years ago.

"Without safeguards like rent caps and a serious commitment to increasing affordable housing supply, there is a risk that rents in WA will continue to rise at exponential rates," Snell said.