With so many people moving to Perth, it’s understandable that anyone who wants a new environment would be influenced to consider moving there also. I mean, the pretty beaches are pretty irresistible, no?

But behind Perth’s beautiful landscape and beaches is a concern that may affect your decision to migrate to the city.

In this article, we’ll look into Perth’s housing market and how it compares to other major cities in Australia. We’ll also guide you through the various housing programs offered by the WA Government to help those looking for a house in the city.

What is the housing market like in Perth?

Perth is currently experiencing a housing crisis due to a low housing supply. As a result, housing prices have shot up by more than 15.2 per cent compared to the previous year with the median price reaching $660,754.

According to The Guardian, this housing shortage is because of a period of relatively slow growth in the market when prices failed to keep up with other major cities. This led to decreased housing construction in the area over the past few years.

Adding to the issue is an influx of migrants from both other countries and states, contributing to an even greater demand for housing. In 2023 alone, Western Australia’s population increased by 86,800 people (as reported by WA Today).

The rental market in Perth is incredibly tight at only a 0.4% vacancy rate. Homes are on the market for an average of just 11 days before being sold—10 days less than Brisbane, the next fastest-selling city (The Guardian).

However, efforts are continuously being made to ease the crisis. Residential construction was upped by 35% in the September 2023 quarter, and nearly 20,000 detached homes are currently under construction in WA.

How does Perth’s housing market compare to other cities in Australia?

Perth has the biggest increase in house prices among other major cities in Australia. Its median house price has skyrocketed past $600,000. 

However, houses in Perth are still cheaper than in other major cities, especially Sydney and Melbourne. 

Adelaide also saw significant growth with a 6.7% increase, bringing their median house price up to $723,536. Brisbane, though, only experienced a 6.5% rise in housing prices.

While Sydney’s price growth of 6.6% is lower than Perth’s, their houses are still significantly more expensive. The median price in the city was $1.48 million in September of 2023, double the median price in Perth.

Melbourne houses are also more expensive than the ones in Perth. Their unit median price is already at over $629,000, almost the same as the median price for a house in Perth.

Will house prices in Perth continue to go up?

House prices in Perth are likely to continue to go up by another 10% in 2024, according to the Real Estate Institute of Western Australia (REIWA). 

WA Today also reported that the median home price could reach an astounding $850,000 within the next few years as the state’s booming economy continues to attract immigrants. 

With only 1,296 home buildings approved last December 2023 and an ever-growing population, there may not be enough supply to meet the current demand in the market. This, of course, would only continue to drive up the house prices in the city.

Different Types of Housing Programs in Perth

If you’re moving to Perth but are afraid of not being able to afford to buy a house or pay for rent, here are some housing programs that can help you:

Public Housing

This program offers more affordable rental housing to eligible households in Perth and the rest of Western Australia. With this program, your rent will only be 25% of your household’s total income.

To be considered for public housing, you have to meet specific requirements, which will be reviewed annually to ensure continued eligibility. 

Each local Communities Housing office has its own criteria and requirements. You have to meet these criteria when applying, while on the waitlist, and before being offered a house.

Community Housing

This is another cost-effective housing option for low to moderate-income families. This option is offered by Community Housing Organisations (CHOs), which are typically non-profit organisations.

CHOs will provide you with information on various housing options and services that may be suitable for your specific household situation.

You don’t really have to choose between community housing or public housing if you’re worried about that. Once you apply for public housing and get deemed eligible, you’ll also be added to the joint waitlist for community housing.

Transitional Housing Program

This program is suitable for members of Aboriginal or Torres Strait Islander communities living in north WA who want to own their own homes or transfer to private rental housing.

The program can assist you in reducing debts and building savings, promoting a healthy lifestyle for yourself and your family, getting a job or securing a training prospect, and achieving ownership of your dream home or qualifying for private rental houses.

Private Rental Aboriginal Assistance Loan

PRAAL is available to Aboriginal people renting private property who fall within the income limits set by the Department of Communities, are facing eviction due to unpaid rent, and are experiencing financial difficulties.

If you meet all the eligibility criteria, you can receive an interest-free loan that covers up to six weeks’ worth of rental arrears to make sure you don’t get evicted.

The loan will be sent directly to the landlord, but both you and your landlord must provide evidence to Communities that eviction will not proceed.

While the loan repayment agreement will depend on your situation, there’s a minimum loan repayment of $25 every two weeks, starting from the date it is approved.

Bond Assistance Loans

This is one of the most common housing options applied for by Perth residents. Over 10,000 loans under this program are approved annually.

Through this, you can receive bond assistance and two weeks’ advance of rent as an interest-free loan to help you find a new home.

The maximum loan amount will depend on your circumstances, so it’s not the same for everyone.

Disability Options

The Communities offers a range of housing options to help those with disabilities find suitable and affordable homes.

Options include help in renting from the mainstream market and modifying existing homes for better accessibility, home loans for purchasing, building, or modifying private homes, bond assistance, and more.

To qualify, your disability must have a lasting or potentially lasting impact on your housing needs. Additionally, you must meet the income limits for people with disabilities in public housing.

Other Housing Options around Perth

The Western Australian government also has various housing programs to help specific demographics who are looking for homes in Western Australia.

Non-Government Organisation Housing Program

This housing program is specifically intended for NGO employees. So long as the NGO is contracted and funded by the Western Australian Government to provide vital services in select regional areas, employees can receive affordable housing options.

The rent is set at the discretion of the NGO and typically varies on the property’s size and location. The rent will be re-evaluated annually to make sure the rent is still appropriate for the house.

The houses for this program are located in Broome, Kununurra, Halls Creek, Karratha, South Hedland, Derby, Roebourne, and Newman.

Remote Aboriginal Housing

The goal of this program is to provide more affordable rent and housing to Aboriginal communities located in East Kimberly, West Kimberley, Pilbara, Mid-West Gascoyne and Goldfield regions.

Since members of these communities typically have lower incomes, designated housing authorities will assist them in finding suitable homes based on their personal circumstances, family size, and rental history.

If approved, an eligible person will be added to the waitlist. Those who do not meet the eligibility criteria may still be placed on the waitlist after a review and careful consideration by the Housing Authority.