WA’s housing landscape is in crisis. A new report – the BCEC Housing Affordability in Western Australia 2025 Report – has laid bare the mounting pressures on accommodation in the State. With rapid population growth, inadequate new dwellings, soaring rents and costly construction delays, West Australians from key workers to low-income renters find themselves squeezed by housing costs that continue to outstrip their incomes.
Background of a Crisis
For many West Australians, housing now feels more like a luxury than a fundamental right. The BCEC report, drawing on data from the 2024 Australian Housing Conditions Data Infrastructure Survey (AHCDIS) and detailed WA suburb-level rental analyses, reveals that only 39 per cent of renters and 48 per cent of mortgage holders believe their housing is affordable. Such figures point to a systemic imbalance that has been building for years.
Perth, for instance, is feeling the weight of demand as 85 per cent of WA’s record population growth—4.2 per cent since March 2023—has been concentrated in the metropolitan area. With population gains outstripping housing completions, the report finds critical gaps on both the ownership and rental fronts. Although more than 20,000 new homes were completed in 2024—the highest number since 2017—the State still lagged by 4,000 homes short of the National Housing Accord target of 24,000 per year.
Key Workers and the Struggle for Home Ownership
The report shines a spotlight on the plight of essential service providers: nurses, police officers, firefighters and other single-income professionals are increasingly finding themselves priced out of the market. In many parts of Perth, rising house prices set against stagnant key worker wages have rendered home ownership unattainable. This not only affects individual families but also has broader social and economic implications. A securely housed workforce is critical for maintaining the functionality of public services, and when housing costs force these workers to spend a disproportionate share of their incomes on rent or mortgages, communities suffer all round.
Rental Market Pressures and Construction Delays
The pressure in the rental market is equally worrying. Suburb-by-suburb tracking of rental bond data has revealed a worrying decline in low-cost rental options. Recent findings indicate that the number of rentals available for less than $350 per week has dropped by 82 per cent, while rental supply in Perth fell short by 7,700 units between March 2023 and the end of 2024. Unsurprisingly, the median weekly rent in Perth now stands at $740—a stark 76 per cent rise since 2020. Even though rental vacancy rates have recently inched above two per cent after staying below one per cent for two years, Professor Alan Duncan, Director of BCEC, warns that relief is unlikely for another 12 to 18 months, with stability not expected until 2026.
Construction delays exacerbate the problem further. Build times have doubled to over 15 months, meaning that every new dwelling not only comes with astronomical costs—sometimes adding up to an extra $100,000—but also with the risk of failing to meet current demand. These delays are a critical concern for prospective homeowners and indicate that even when houses are built, they may fail to reach the market quickly enough to alleviate the crisis.
Spatial Inequality and the Changing Face of Perth
Data analysis from the report highlights a growing mismatch between where homes are built and where households need them. As fewer low-cost rental properties are available in inner and middle suburbs, vulnerable renters are increasingly pushed to the outer edges of Perth. This “spatial inequality” severs many residents from employment hubs and essential services, deepening community divides. Similar challenges have been identified in other high-growth cities such as Vancouver and Toronto, where policy responses like inclusionary zoning and vacant property taxes have been introduced. However, Perth’s unique demographic mix—shaped by a recent mining boom and fly-in, fly-out workforce dynamics—requires solutions tailored to local circumstances.
Implications for Health and Social Stability
The housing predicament stretches far beyond economics, with significant repercussions for community health. According to the BCEC report, 43 per cent of residents in unaffordable housing report physical health issues, while more than 40 per cent face mental health challenges. Rising homelessness figures—an eight per cent increase since 2016—and a growing social housing waitlist now standing at over 20,700 signal that the crisis is not only a market failure but one with social consequences. Particularly concerning is the 330 per cent growth in priority social housing cases since 2018, with thousands languishing in urgent need of secure accommodation.
Experts like Professor Steven Rowley of the Australian Housing and Urban Research Institute stress that poor housing conditions are intrinsically tied to worse health outcomes. When families are forced into overcrowded or inadequately maintained homes, their physical and mental health suffers, compounding long-term social challenges and straining public health systems.
A Call for Bold Policy and Coordinated Action
The BCEC Housing Affordability in Western Australia 2025 Report outlines over 30 recommendations aimed at tackling the crisis head-on. Recommendations include:
• Expanding rental assistance and making WA’s rent relief program permanent
• Enhancing homelessness services and strengthening early intervention programmes
• Rebalancing the planning process to ensure new housing is built in areas where demand is greatest, particularly close to key services and employment hubs
Professor Duncan warns that without rapid, integrated reforms the housing crisis could lock an entire generation out of secure, affordable living arrangements, further hindering economic development and deepening social inequality.
International and Historical Perspectives
The challenges facing WA are in many ways reflective of broader global trends. Both Auckland and Vancouver have experienced similar pressures stemming from rapid population growth, limited housing supply and skyrocketing rents. In these cities, innovative policy interventions have begun to make a difference, suggesting that WA might learn from international experience while also considering its unique challenges. Historic trends in WA indicate that previous efforts to address housing demand have often been piecemeal; the current crisis demands a coordinated, multi-tiered strategy that brings together state and federal governments, local councils and community organisations.
Looking Ahead: Solutions for a Sustainable Future
Without sustained political commitment and coordinated action across multiple levels of government, the outlook remains uncertain for many West Australians. New policies must address both supply-side constraints—by streamlining planning approvals and investing in faster construction—and demand-side pressures by strengthening the social safety net. The report suggests that with integrated planning and bold action, it is possible to reduce future housing stress, provide more broadly affordable options and ultimately ensure that housing in WA meets not just economic, but social and health-related needs as well.
For many in Perth, the BCEC report is a clarion call. It demands that policymakers, developers and community stakeholders work together to reshape the housing landscape before years of neglect result in irreparable long-term consequences. In a state already defined by its natural beauty and robust economic potential, the ability to provide secure and affordable housing is essential for ensuring that West Australians can enjoy both social and economic well-being.
Sources:
• Australian Bureau of Statistics – Population Data: https://www.abs.gov.au/statistics/people/population/national-state-and-territory-population/latest-release
• Department of Treasury, WA – Budget Papers: https://www.treasury.gov.au/publications/budget-papers
• BCEC Housing Affordability in Western Australia 2025 Report
• Australian Housing Conditions Data Infrastructure Survey (AHCDIS)
• Canadian Mortgage and Housing Corporation Studies (for international comparisons) – https://cmhc.ca/en/professionals/housing-markets-data-and-research/housing-research/research-reports
By drawing on comprehensive data and situating WA’s challenges in both a historical and international context, this report provides a critical roadmap for reform. The time to act is now, as lasting, coordinated policies are essential to reversing these troubling trends and safeguarding the future of Western Australia’s communities.
