The City of Bunbury.
Recent findings from the quarterly rent report indicate that the rental market in regional Western Australia (WA) is entering a phase of slow yet uneven growth. According to the report by Domain, renters are increasingly testing their financial limits as rental prices continue to rise, albeit at a slower pace than in recent years.
Dr. Nicola Powell, the chief of research and economics at Domain, highlighted that the rental landscape in Australia is shifting. “Rents are still at record highs, but household budgets are under pressure. In many areas, renters now need an income of more than $100,000 to rent comfortably,” she stated. This reflects a growing disparity between rental prices and household incomes, complicating the affordability crisis for many.
The report noted that the dynamics of the rental market are becoming more localized. “The market is no longer moving in one direction,” Dr. Powell explained. Changes in rental prices are increasingly dependent on geographic location and property type, whether a house or a unit. Despite these shifts, conditions remain favorable for landlords, characterized by low vacancy rates across all capital cities.
Looking at the numbers, the report revealed that regional rents for houses in WA increased by 3.8 percent during the December quarter, while rents for units remained stable at $600 per week. The South West regions, particularly Busselton and Capel, are noteworthy for their annual growth rates, ranking ninth and tenth among local government areas. Leading the list is Karratha, which reported a remarkable 18.2 percent growth. Busselton recorded 6.7 percent growth, while Capel followed closely with 6.2 percent.
For some renters, there is a glimmer of hope. Bunbury emerged with the seventh-lowest median rent in regional WA, set at $600 weekly. In contrast, Coolgardie topped the list with the lowest median rent of just $390 per week, providing a more affordable option for those seeking housing in the region.
Conversely, several local government areas in the South West reported some of the highest median rents in regional WA. Busselton’s median rent stands at $800 per week, while Capel commands $690. Other notable areas include Dardanup at $660 and Harvey at $650. Karratha remains at the forefront, with a staggering median rent of $1,300 per week.
Looking ahead, Dr. Powell noted that increased investor activity and ongoing support for first-home buyers could alleviate the rental housing shortage. She anticipates that the market may begin to rebalance by 2026, potentially providing more equitable conditions for renters in the future.
As the regional WA rental market evolves, the challenges and opportunities it presents will continue to be a focal point for both renters and landlords alike.
