Perth’s rental market is finally showing signs of breathing room — but tenants, landlords and investors should not mistake a higher vacancy rate for a return to normal. For more than four years, Perth’s rental market has been defined by one word: scarcity. Tenants competed for homes. Properties attracted multiple applications. Landlords could often lease a property within days. Investors enjoyed strong rental growth. And the number that became almost symbolic of the market — the rental vacancy rate — remained stubbornly below what would normally be considered a balanced market. Now, in 2026, something has changed. Perth’s rental vacancy rate has risen materially from the extraordinary lows seen during the rental crisis. According to the latest REIWA data:

• Perth’s vacancy rate reached 2.2 per cent in July 2026, up from 2.1 per cent in June and below the 2.4 per cent recorded in July 2025.
• Vacancy rate between 2.5 and 3.5 per cent to represent a balanced rental market. At first glance, this looks like good news. And it is — to a degree.

But there is an important distinction between the rental market becoming less brutally tight and the rental shortage being solved. Those are not the same thing.

Perth is still operating below the lower end of REIWA’s balanced-market range. Rents remain elevated. Population growth remains strong. New rental supply is taking time to arrive. Investor participation remains a critical question. And the supply pipeline is not yet strong enough to guarantee that today’s improvement will continue. That is why the Perth rental story in 2026 is much more interesting than a simple headline saying, “Vacancies are rising.” The real question is: Has Perth finally turned the corner on its rental shortage — or are we simply seeing a temporary pause before pressure builds again?

• For landlords, the answer could determine rental strategy.
• For investors, it could influence where and what they buy.
• For tenants, it could determine whether the next 12 months bring meaningful choice — or simply a slightly less competitive version of the same difficult market.

And for a Perth real estate business such as Bargoti Real Estate, it means looking beyond the headline vacancy number and understanding what is actually happening at suburb level.

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The Perth rental market has come a long way — but not all the way back.

To understand why the current 2.2 per cent figure matters, we need to put it into perspective. REIWA has traditionally regarded 2.5 to 3.5 per cent as the range associated with a balanced rental market. A vacancy rate below that generally indicates tighter conditions. In contrast, a rate materially above it can indicate more choice for tenants and greater pressure on landlords to compete on price and presentation. Perth spent years nowhere near that range. In December 2022, REIWA reported Perth’s vacancy rate at just 0.6 per cent, with the market spending much of the preceding period below 1 per cent. REIWA noted that the vacancy rate had remained persistently low and that Perth last reached 2.5 per cent in September 2019. The Perth rental market did not simply become tight for a few months. 

• The pandemic-era migration surge.
• Limited rental construction.
• Low listings.
• Construction delays.
• Changing household formation.
• Strong employment conditions.

Together, these factors created an environment in which available rental homes were consistently insufficient relative to demand.

By March 2025, the market had finally climbed back to 2.5 per cent, according to REIWA — a level it had not recorded since September 2019. REIWA described this as the lower end of a balanced market, while also warning that reaching 2.5 per cent did not mean the rental challenges of the previous years had suddenly disappeared. The latest REIWA figures provide a useful snapshot of where Perth stands.

Period	Perth vacancy rate
December 2022	0.6%
March 2025	2.5%
December 2025	2.6%
January 2026	2.6%
February 2026	2.2%
March 2026	2.0%
June 2026	2.1%
July 2026	2.2%
REIWA balanced range	2.5%–3.5%

Perth’s rental market did improve dramatically from the extreme shortage of 2022 and 2023. But the improvement has not been a straight line. The vacancy rate reached 2.6 per cent around December 2025 and January 2026 before falling to 2.2 per cent in July. REIWA’s March 2026 figure was 2.0 per cent. So while the market is far healthier than it was during the worst stage of the rental crisis, the improvement has stalled short of a genuinely balanced market. That is the first major warning sign. 

Imagine a tenant looking for a three-bedroom home in Perth. A vacancy rate moving from 0.6 per cent to 2.2 per cent sounds like an enormous improvement. Statistically, it is. But a vacancy rate is a citywide measure. A tenant does not rent “Perth”. They rent a particular property in a particular suburb, within a particular price range, close to a particular school, train station, workplace or family network. There may be more properties available across metropolitan Perth, but not enough affordable, well-located, and suitable properties for every category of tenant.

• A family looking for a four-bedroom house in a school-oriented suburb may still face intense competition.
• A tenant looking for a modern apartment near the CBD may encounter a completely different market.
• A household with a strict budget may have very few options even if the overall vacancy rate is improving.

This is why suburb-level analysis is increasingly important in Perth. The market is no longer simply “tight” or “loose”. It is becoming segmented.

Perth’s rental market is becoming a two-speed — and sometimes multi-speed — market.

One of the most important developments for 2026 is the growing difference between suburbs and property types. The Perth-wide median weekly rent is now sitting at:

• $750 per week for houses.
• $700 per week for units.

According to REIWA’s latest June 2026 quarterly data. House rents increased 1.4 per cent during the June quarter, while unit rents were unchanged. REIWA’s metropolitan data updated on 28 August 2026 shows the same broad picture, with a median house rent of $750 per week and a median unit rent of $700. But suburb numbers can differ significantly. Consider several examples:

A. Suburb spotlight: Baldivis

Baldivis is a useful example of how Perth’s outer suburban market is evolving. According to the latest REIWA suburb data, Baldivis has:

• Median house price: $840,000
• Median house rent: $680 per week
• Annual rental price growth: 6.3 per cent
• Median three-bedroom house rent: $630 per week
• Median four-bedroom house rent: $695 per week
• Median house rental time on market: 17 days

REIWA data is based on transactions and leases through July 2026. At first glance, Baldivis looks considerably more affordable than some inner and middle-ring suburbs. A 6.3 per cent annual increase shows that even as supply improves, rental affordability remains under pressure. Baldivis has a large, family-oriented population, extensive new housing, and access to schools, shopping, and transport connections through the broader Rockingham area. REIWA identifies the suburb as one of the sought-after locations south of the river. For an investor, the lesson is not simply that Baldivis has a $680 weekly median. A four-bedroom house in the high-$600s can appeal to a different tenant pool than a smaller townhouse or unit.

B. Wellard: rental growth remains stronger than the Perth average

Wellard presents another interesting case. REIWA’s latest figures put the suburb’s median house rent at approximately $700 per week, with annual rental price growth of 7.7 per cent. 

• The median house price is around $835,000. 
• The suburb is approximately 35 kilometres from Perth CBD and has its own train station, which is a significant consideration for tenants who need access to employment centres without paying inner-city housing prices. 

This is precisely the type of suburb that investors need to watch as Perth’s rental market matures. Because a higher vacancy rate doesn’t automatically mean rental growth disappears. Instead, rental growth may become more selective. Well-priced, well-presented properties near transport and amenities can still perform even as the broader market becomes less frantic. Wellard’s 7.7 per cent annual rental growth illustrates that point.

C. Belmont: proximity starts to command a premium

Move closer to the CBD and the numbers change again. Belmont has a median house rent of approximately $780 per week, according to the latest REIWA data, with annual rental price growth of 11.4 per cent. That is significantly higher than Baldivis’ median of $680. The difference is not accidental. Belmont is only around six kilometres from Perth and offers access to retail, employment, transport and established amenities.

• For tenants, proximity has a price.
• For investors, this creates an important trade-off.

Higher purchase price can mean higher weekly rent, but the relationship between purchase price and rental income needs careful assessment. This is where simplistic investment strategies can fail. “Buy where rents are rising fastest” is not enough. Belmont’s location provides a structural reason for rental demand. That does not guarantee future growth, but it makes the story different from a newly developed outer suburb where the rental market may depend heavily on population growth and new housing absorption.

D. Rivervale: the inner-ring rental proposition

Rivervale provides another useful contrast. REIWA’s latest figures show:

• Median house price: approximately $1.045 million
• Median house rent: $745 per week
• Annual rental price growth: approximately 6.4 per cent
• Median unit rent: approximately $732 per week

Rivervale is only around five kilometres from Perth CBD. Its appeal includes proximity to the CBD, public transport and the broader Burswood and Belmont precincts. But notice something interesting. The median rent isn’t dramatically higher than Belmont, despite a much higher median house price. That highlights an issue investors cannot ignore. 

Also Read: Buy and hold: The tightly-held suburbs where people stay for decades

The headline numbers: Perth compared with Australia

The broader Australian rental market provides another layer of context. According to research, the Q2 2026 Rental Review, Australia’s national dwelling vacancy rate remained at 1.6 per cent during the June quarter, below the five-year average of 1.8 per cent. Rental listings were still 16.7 per cent below the five-year average. Q1 report had Perth among the country’s most constrained rental markets, with a vacancy rate of 1.2 per cent under its methodology. This is an important reminder:  No single vacancy-rate number is calculated the same way by every provider.

• REIWA’s July 2026 Perth vacancy rate is 2.2 per cent.
• SQM Research’s July 2026 series puts Perth at approximately 0.6 per cent.
• Cotality’s quarterly series has also reported materially different figures.

This does not mean one dataset is “wrong”. The organisations use different datasets, coverage, measurement periods and methodologies. For serious market analysis, the correct approach is not to cherry-pick whichever number supports a particular argument. It is to look at the direction of travel. SQM Research’s July 2026 data shows how different the picture can look when it applies an advertised-vacancy methodology.

• Nationally, the vacancy rate remained at 1.3 per cent in July 2026, with 40,771 rental properties vacant.
• Perth was reported at approximately 0.6 per cent, among the tightest capital-city markets.
• National advertised rents were also around 7.2 per cent higher than a year earlier.

This reinforces the article’s central point.

• If we relied solely on REIWA’s 2.2 per cent number, we might conclude that Perth is almost balanced.
• If we relied solely on SQM’s 0.6 per cent figure, we might conclude that Perth is still in a severe rental crisis.

The reality sits somewhere more nuanced. Different measures capture different parts of the market. And tenants’ and property managers’ practical experiences can vary dramatically by suburb and property type.

The vacancy rate has risen dramatically above the sub-1 per cent levels seen during the worst stage of the rental crisis. More properties are available.

• Tenants have more choice than they did several years ago.
• Landlords are having to think more carefully about pricing.

Rental properties are no longer universally guaranteed to attract an enormous queue of applicants. But Perth has not reached the point where tenants can assume they will have plenty of options. 

• REIWA’s 2.2 per cent figure remains below its balanced range. And the most recent direction is particularly important. 
• After reaching 2.6 per cent around the end of 2025 and beginning of 2026, Perth’s vacancy rate subsequently fell towards 2.0 per cent before edging back to 2.2 per cent. 

That suggests the market is not moving in a straight line towards oversupply. Instead, supply and demand are still fighting for balance. Vacancy rates will improve because more homes are being built. But new housing does not instantly become available rental stock. There is a significant lag between:

• An investor deciding to buy;
• Finance being arranged;
• Land being acquired;
• Construction commencing;
• Construction being completed;
• Settlement occurring;
• The property being prepared for tenants;
• The property being advertised;
• A tenant moving in.

REIWA has warned that even if investors respond to changes in taxation policy by buying new builds, it could take 12 to 18 months for those properties to be completed and added to rental supply. That is a long time in a rental market where population growth can change rapidly.

Perth’s population growth is keeping the pressure on

Western Australia’s population grew by 2.2 per cent in the year to December 2025, according to REIWA, making WA the fastest-growing state or territory over that period. REIWA said most of the growth came from overseas migration, which supports rental demand. This is one of the strongest reasons why the current vacancy improvement should not be interpreted as a permanent shift towards tenant-friendly conditions. Perth can add rental properties and remain tight if population growth adds households faster than rental supply can absorb them. This is the fundamental equation: Rental availability = housing supply – effective household demand.

• If supply grows by 2 per cent but the number of households seeking rental accommodation grows faster, the vacancy rate can fall again.
• Investors provide a significant portion of Australia’s private rental housing. If investors leave the market, owner-occupiers can buy existing rental stock. That may help a first-home buyer purchase a property.

This is why population forecasts matter almost as much as construction figures. 

• Perth’s rental market over the next 12 to 24 months. But it can simultaneously remove a rental property from the long-term rental pool. This creates a policy dilemma.
• More owner-occupier purchases can improve home ownership. But fewer investor-owned properties can reduce rental supply.
• REIWA has expressed concern about investor participation in Perth, reporting that potential investors have become hesitant and that members have observed a decline in investor purchases.

This matters because Perth’s population is still growing strongly. If demand continues rising while investor participation weakens, today’s modest vacancy improvement could reverse.

An investor who purchased several years ago may now have substantial equity. At the same time, the property may have experienced:

• Strong capital growth;
• Strong rental growth;
• Higher insurance costs;
• Higher maintenance expenses;
• Higher property management costs;
• Higher rates or financing costs;
• Increased regulatory requirements;
• Changing taxation settings.

The temptation to sell can therefore become stronger. But when enough investors make that decision at the same time, the rental market can tighten. One investor’s exit is a personal financial decision. Thousands of investor exits become a housing-supply issue. That is why the investor participation rate needs to be watched closely.

Five major reasons Perth’s rental relief could prove temporary.

• Population growth remains strong: WA’s 2.2 per cent annual population growth creates ongoing demand for homes.
• Rental construction takes time: Even where investment incentives improve, new homes do not enter the rental market immediately.
• Existing rental stock remains below previous peaks: REIWA has noted that estimated rental supply remains below the peak recorded in February 2021.
• Investor participation is uncertain: If investors continue to hesitate, future rental supply could remain inadequate.
• Tenants are not all competing for the same homes: The citywide vacancy rate can rise while affordable family homes remain difficult to secure.

These five factors explain why Perth could sit around the 2 per cent mark for some time without reaching a genuinely comfortable rental market.

Perth’s unit rental market is becoming increasingly important because the median unit rent is now around $700 per week across the metropolitan market, compared with $750 for houses. For many tenants, the $50 weekly difference matters. It can influence whether a household chooses:

• A unit over a house;
• An inner suburb over an outer suburb;
• A smaller dwelling close to work over a larger property further away.
• The apartment market could therefore become an important pressure valve.

A large amount of new apartment supply in an area with weak tenant demand does not solve the shortage where renters actually want to live. The next stage of Perth’s rental market will not simply be about adding homes. It will be about adding the right homes in the right places. Consider the difference between:

• A new home 45 kilometres from the CBD;
• A townhouse close to a train station;
• An apartment close to employment;
• A family home near schools;
• A two-bedroom unit in an established inner-ring suburb.

All of these technically add “rental supply”. But they serve different tenant groups. That is why Perth’s outer-growth suburbs and established suburbs shouldn’t be analysed as though they are interchangeable.

The Bargoti Real Estate perspective: Stop looking at Perth as one market

For a real estate business such as Bargoti Real Estate, the practical lesson is straightforward. A citywide vacancy rate is useful. The real market intelligence comes from understanding what is happening at the property and suburb level. That means asking:

• How many comparable homes are currently available?
• How long are they taking to lease?
• How many applications are being received?
• Are tenants negotiating?
• Are owners accepting the asking rent?
• How many properties are being withdrawn?
• Are properties being re-advertised?
• Are tenants choosing smaller homes because of affordability?
• Is demand shifting between suburbs?
• Are investors buying?
• Are owner-occupiers taking properties out of the rental pool?

These questions reveal where the Perth market is actually heading. During the tightest phase of Perth’s rental crisis, landlords had enormous pricing power. A property could be advertised, inspected and leased rapidly. In some parts of the market, the biggest challenge was not finding a tenant. It was choosing between tenants. That environment changes as vacancy rises. Landlords now need to consider the cost of getting the asking rent wrong. Suppose a property could achieve $750 per week but is advertised at $790. If it remains vacant for three weeks, the additional $40 per week is irrelevant.

• Three weeks of lost rent equals: $790 × 3 = $2,370

The owner would need many months of higher rent to recover that lost income. This is why a smarter strategy can sometimes be: Price correctly, lease quickly and retain a good tenant. Not: Advertise as high as possible and wait.

As the market becomes more balanced, tenant retention becomes increasingly important. A good tenant is valuable. They:

• Pay on time;
• Look after the property;
• Reduce vacancy risk;
• Reduce advertising costs;
• Reduce inspection disruption;
• Reduce letting fees;
• Reduce cleaning and maintenance turnover.

If a landlord pushes rent too aggressively, the tenant may leave. The landlord may then spend weeks searching for another tenant. In a 2.2 per cent vacancy market, the risk is different from a 0.6 per cent market. The owner can no longer assume the next tenant will appear immediately. This is one of the biggest behavioural changes we expect to see as Perth’s rental market matures.

Tenants should expect a market that is better than the worst years, but still far from easy. The biggest improvement is likely to be choice. Not necessarily cheap rent. A tenant may now see:

• More properties advertised;
• Slightly longer listing periods;
• More inspection opportunities;
• Less competition on some properties;
• More negotiating power on overpriced homes.

But they should not expect Perth rents to fall suddenly. The latest REIWA figures put the metropolitan median house rent at $750 per week. And REIWA has forecast rental growth of more than 5 per cent during 2026, reflecting continuing supply concerns. So the likely scenario is not: “Vacancy rises, therefore rents collapse.” It is: “Vacancy improves, rental growth moderates, but rents remain elevated.” Vacancy rates can improve while rental affordability remains difficult. Suppose a household was paying $600 per week several years ago.

• If the same household is now paying $750, that is an additional: $150 per week
• or approximately: $7,800 per year
• Before considering utilities, insurance, transport, food and other living costs.

This is why a 2.2 per cent vacancy rate should not be interpreted as the end of the rental affordability crisis. The market may be becoming less competitive without becoming affordable.

What the current suburb figures tell investors

Let’s bring together several current REIWA figures.

Suburb	Median House Price	Median House Rent	Annual Rental Growth
Perth Metro	$950,000	$750	—
Baldivis	$840,000	$680	6.3%
Wellard	$835,000	$700	7.7%
Belmont	$925,000	$780	11.4%
Rivervale	$1.045m	$745	6.4%

REIWA data updated in August 2026, based on transactions and leases through July 2026. There are several lessons here.

• First, rental growth is not uniform.
• Second, established locations with strong tenant demand can see higher rental growth.
• Third, affordability continues to shape demand in outer suburbs.
• Fourth, investors need to consider purchase price and rent together.
• Fifth, a Perth-wide vacancy rate tells only part of the story.

Perth’s rental market increasingly presents a trade-off.

A. Inner suburbs

Advantages:

• Better access to employment;
• Public transport;
• Established amenities;
• Lifestyle appeal;
• Strong tenant demand.

Disadvantages:

• Higher purchase prices;
• Often lower gross yields;
• More expensive rental stock.

B. Middle-ring suburbs

Advantages:

• Balance between location and affordability;
• Family appeal;
• Established services;
• Strong transport access.

Disadvantages:

• Increasing purchase prices;
• Competition from both owner-occupiers and investors.

C. Outer-growth suburbs

Advantages:

• Larger homes;
• More affordable purchase prices;
• Strong family demand;
• New housing stock.

Disadvantages:

• Longer commuting distances;
• Infrastructure dependency;
• Potential concentration of new supply;
• Greater sensitivity to oversupply in specific pockets.

There is no universally “best” Perth rental suburb. Suburbs only suit particular strategies.

A simple gross rental yield calculation can help illustrate the differences. For example, using an $840,000 Baldivis house renting at $680 per week:

• Annual rent: $680 × 52 = $35,360
• Indicative gross yield: $35,360 ÷ $840,000 × 100 = approximately 4.2 per cent
• For a Belmont house at $925,000 renting for $780: $780 × 52 = $40,560
• Indicative gross yield: $40,560 ÷ $925,000 × 100 = approximately 4.4 per cent

These are simplified gross calculations and do not account for:

• Interest;
• Property management;
• Insurance;
• Maintenance;
• Council rates;
• Water charges;
• Land tax;
• Strata fees;
• Vacancy;
• Leasing costs;
• Capital expenditure;
• Tax.

But they demonstrate why investors need to look at the full equation.

One of the biggest psychological shifts for Perth landlords could be the end of the assumption that every property will automatically rent at whatever price is advertised.

• The rental crisis rewarded passive ownership.
• The next phase will reward active ownership.

That means:

• Presentation: A clean, well-maintained property photographs better and attracts better tenants.
• Pricing: The asking rent must reflect comparable properties.
• Maintenance: Small unresolved problems can influence tenant decisions.
• Communication: Good tenants increasingly expect professional management.
• Timing: Seasonality can influence leasing outcomes.
• Strategy: The owner needs to know whether the goal is maximum rent, minimum vacancy, long-term tenant retention or a combination.

For Perth property owners, the most useful dashboard in 2026 is not simply the vacancy rate. A better dashboard includes:

Indicator	Why it matters
Vacancy rate	Measures broad rental availability
Median rent	Shows market pricing
Rent growth	Indicates demand pressure
Days to lease	Shows tenant urgency
Number of comparable listings	Measures direct competition
Application numbers	Measures property-level demand
Population growth	Indicates future housing demand
New dwelling completions	Measures incoming supply
Investor purchases	Indicates future rental stock
Rental listing volumes	Shows actual tenant choice

Why days on market may become more important than vacancy rate

Consider two suburbs with the same vacancy rate.

Suburb A:

• Median days to lease: 7
• Strong application numbers
• Minimal negotiation

Suburb B:

• Median days to lease: 25
• Frequent price reductions
• Fewer applications

Both could have the same vacancy rate. But they are not the same market. Days to lease can provide an early warning signal. If properties begin taking longer to rent, landlords may need to adjust expectations before the broader vacancy rate changes materially. This is why property managers and local agents can sometimes detect turning points before national data does.

Several potential catalysts could drive further improvement.

• More completed housing: If construction completions accelerate, more rental properties could enter the market.
• Increased investor activity: If investors return, existing stock is retained, and additional investment properties can be created.
• Lower migration: If population growth slows, rental demand could moderate.
• Higher household formation efficiency: If average household size increases, fewer dwellings may be needed for the same population.
• Increased apartment supply: Additional units in well-connected locations could provide alternatives to houses.

If several of these factors occur simultaneously, Perth could finally move above 2.5 per cent and into REIWA’s balanced range.

The downside scenario is equally important.

• Strong population growth continues: WA remains one of the country’s fastest-growing jurisdictions.
• Investors sell: Rental properties move into the owner-occupier market.
• Construction remains constrained: New rental stock fails to arrive quickly enough.
• Development becomes financially unviable: High land, construction and financing costs prevent projects from proceeding.
• Rents rise: Higher rents can attract investors, but they can also create affordability problems that force tenants to compete for cheaper properties.

This last point is particularly important. A high-end rental property may become easier to lease while affordable properties become even more competitive. Perth’s rental market may increasingly divide into two broad groups.

• At the top end, high-income tenants can afford $800, $900, or $1,000-plus weekly rents.
• At the lower end, households are competing for homes at $500–$650 per week.

The middle can become surprisingly competitive. A three-bedroom family home at $650–$700 may attract significantly more demand than a luxury home at $1,000. This means the most meaningful vacancy rate for many households is not the metropolitan figure. It is the vacancy rate of properties they can actually afford.

Perth’s population growth has been one of the strongest demand drivers in the housing market. REIWA has highlighted overseas migration as a major contributor to WA’s 2.2 per cent annual population growth to December 2025. New migrants often enter the rental market before purchasing. That creates immediate rental demand. They may also have location preferences based on:

• Employment;
• Family networks;
• Schools;
• Public transport;
• Community connections.

This means population growth does not distribute rental demand evenly across Perth. Some suburbs can see much stronger demand than the metropolitan average. 

• Transport will remain one of the strongest drivers of rental demand. 
• For many households, a suburb’s value is not simply its distance from Perth CBD. 

It is the time required to reach work. That makes train stations, major bus routes and major road connections important. Wellard, for example, has a train station, while Baldivis relies on access to Warnbro station and connecting bus services. REIWA identifies these transport links as part of the suburbs’ characteristics. A tenant may accept living further from the CBD if transport is reliable.

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Why 2026 could be a turning point for Perth investors

Perth’s property market is simultaneously experiencing strong sales-market conditions and a more complicated rental market. REIWA reported that Perth’s median house sale price reached approximately $938,000 at the end of June 2026, following strong quarterly growth. The median unit price reached approximately $675,000. That means investors are entering a market where:

• Property prices are significantly higher;
• Rents are elevated;
• Rental growth remains positive;
• Vacancy is improving but not balanced;
• Population growth remains strong;
• Investor sentiment is mixed.

This combination makes asset selection more important than ever.

• The biggest mistake is assuming yesterday’s rental growth will repeat tomorrow.
• A suburb that experienced 12 per cent rental growth last year may not repeat that performance.
• As supply catches up, rental growth normally moderates. 

The objective is not to buy the suburb with the highest historical growth. It is to identify the suburb where future tenant demand is likely to remain stronger than future rental supply. A strong investment property should ideally have several of the following:

• Established tenant demand: Not simply population projections. Actual tenants.
• Multiple demand drivers: Schools, employment, transport, shopping and lifestyle.
• Limited competing supply: If hundreds of identical properties are being built nearby, vacancy risk can rise.
• Reasonable entry price: A great suburb can still produce a poor investment if the purchase price is excessive.
• Strong rental affordability: The property should sit within a rent range that a broad tenant pool can afford.
• Good property functionality: Parking, bedrooms, storage, outdoor space and layout matter.
• Low avoidable costs: High strata or maintenance expenses can destroy gross yield.

Property management is also changing. During the rental crisis, the core challenge was finding a tenant. The next phase is more complex. Property managers need to balance: Owner return + tenant retention + vacancy risk + compliance + asset quality. For agencies such as Bargoti Real Estate, this creates an opportunity to differentiate through market knowledge. Owners do not simply need someone to upload a listing. They need someone who understands:

• What the property should rent for;
• What competing properties are doing;
• What tenants are asking for;
• When a property should be repriced;
• How to reduce vacancy;
• How to retain strong tenants;

Which improvements will actually add rental value. The changing market also lets tenants be more strategic. If vacancy continues improving, tenants should not feel pressured to accept an obviously overpriced property simply because they fear there are no alternatives. But they should still act quickly on good properties.

• A balanced market is not necessarily a soft market.
• A well-priced home can still attract multiple applicants.

Tenants should therefore:

• Know their budget;
• Prepare documents in advance;
• Understand comparable rents;
• Inspect quickly;
• Apply promptly when appropriate;
• Avoid overcommitting financially;
• Consider neighbouring suburbs;
• Compare transport costs with rent savings.

A $50 weekly saving on rent is $2,600 per year. But if that saving adds significantly to commuting costs, the apparent bargain may not be a bargain.

It is worth returning to REIWA’s 2.5–3.5 per cent benchmark. A balanced vacancy rate does not mean:

• Rents become cheap;
• Landlords lose money;
• Tenants always get their first choice;
• Property values fall;
• Investors stop buying.

It simply means the supply-demand relationship is healthier.

• Tenants have reasonable choices.
• Landlords have reasonable demand.
• Properties do not automatically lease at any price.
• Negotiation becomes possible.

That is a healthy market. Perth has not quite reached that point. At 2.2 per cent, it is close enough to see the destination — but not close enough to assume it has arrived. The 2026 Perth rental market in one table:

Factor	Current direction	What it means
REIWA vacancy	2.2%	Improving from crisis lows but still below balanced
REIWA balanced range	2.5–3.5%	Perth remains tighter than balanced
Median house rent	$750 pw	Affordability remains stretched
Median unit rent	$700 pw	Units provide an important alternative
WA population growth	2.2% annually to Dec 2025	Strong underlying housing demand
Rental supply	Below Feb 2021 peak	Structural shortage remains
Investor participation	Cautious	Future rental supply risk
House rental growth	Still positive	Rents are not falling simply because vacancy improved
Construction pipeline	Improving but slow to deliver	Supply response takes time
Tenant choice	Better than crisis years	Gradual relief
Rental outlook	Moderating but vulnerable	Relief could prove temporary

The future is unlikely to be determined by one number. A scenario approach is more useful.

Scenario 1: Genuine normalisation

Under this scenario:

• Construction accelerates;
• Investors return;
• Population growth moderates;
• New rental stock comes online;
• Vacancy rises above 2.5 per cent;
• Rental growth slows;
• Tenant choice improves.

This would be the healthiest outcome. Rents may not fall dramatically. Instead, rental growth could become more moderate.

Scenario 2: The “stuck tight” market

This may be the most realistic base case. Under this scenario:

• Vacancy remains around 2 per cent;
• Rents continue rising moderately;
• Population growth remains strong;
• Construction adds supply but not quickly enough;
• Investors remain cautious.

The market does not return to the 0.6 per cent crisis. But it also does not reach a comfortable equilibrium. Tenants experience some relief but still face affordability pressure. Landlords continue to enjoy demand but need to price properties more carefully.

Scenario 3: The second rental squeeze

This is the risk scenario. Under this scenario:

• Investor selling accelerates;
• New rental construction slows;
• Migration remains strong;
• Population growth outpaces housing supply;
• Vacancy falls back towards 1.5–2 per cent;
• Rents accelerate again.

This scenario makes the current improvement potentially short-lived. And it is precisely why the 2026 data needs to be monitored rather than celebrated prematurely.

The most important Perth rental market pain points in 2026

If we strip away the noise, the Perth rental market really comes down to a handful of major pain points.

• Rents are still expensive: A $750 median weekly house rent is a significant financial commitment.
• Vacancy is improving, but not enough: At 2.2 per cent, Perth remains below REIWA’s balanced range.
• Supply is still structurally constrained: Rental stock remains below previous peaks.
• Population growth is absorbing new supply: More people mean more households needing homes.
• Investors are uncertain: Reduced investor participation can directly affect rental supply.
• New housing takes time: Approvals do not immediately become rental properties.
• The affordable rental segment is particularly vulnerable: Tenants on lower and middle incomes have fewer alternatives.
• Suburb differences are becoming more important: Perth cannot be treated as one uniform rental market.
• Landlords can no longer rely solely on scarcity: Pricing and property quality matter more.
• Relief can reverse: The market remains sensitive to population, supply and investor behaviour.

These are the issues that matter. Not generic predictions about whether “Australian property prices will boom or crash.

The next phase of Perth’s rental market will tell us whether 2.2 per cent is: a stepping stone to equilibrium.

or a temporary interruption in a structural shortage. The signals to watch are clear.

• Watch vacancy: Does it move above 2.5 per cent?
• Watch rents: Does rental growth slow materially?
• Watch listings: Are more properties entering the market?
• Watch investor activity: Are investors buying or selling?
• Watch population: Does WA continue growing at around 2 per cent or more?
• Watch construction: Are completed dwellings actually increasing?
• Watch days to lease: Are landlords waiting longer to find tenants?

Together, these indicators will tell us far more than a single monthly vacancy figure. The Perth rental market is moving from a scarcity-driven market to a quality-and-location-driven market. That is a significant transition. When rental stock was desperately scarce, almost every property benefited. Now, as supply improves, the differences between properties become clearer. A tenant may choose:

• A $700 home close to transport over a $680 home requiring a long commute;
• A renovated $750 home over an outdated $730 home;
• A well-maintained townhouse over a larger but poorly maintained house.

Landlords therefore need to think like marketers. The question is no longer: “Can I rent this property?” It is: “Why would the best tenant choose this property over the alternatives?” That question will increasingly determine rental performance.

Before setting a rental price, owners should review:

Market

• Current suburb median;
• Comparable properties;
• Recent leased properties;
• Current competing listings;
• Days on market.

Property

• Presentation;
• Maintenance;
• Appliances;
• Air conditioning;
• Parking;
• Outdoor area;
• Storage;
• Security;
• Energy efficiency.

Tenant

• Likely demographic;
• Household size;
• Budget;
• Employment locations;
• School requirements;
• Transport needs.

Strategy

• Maximum rent;
• Minimum vacancy;
• Long-term tenant;
• Property value protection.

The correct rental price is not always the highest number imaginable. It is the price that maximises the owner’s overall return after vacancy and turnover costs. Tenants should:

• Establish a realistic weekly budget.
• Allow for utilities and transport.
• Compare nearby suburbs.
• Research recent rental prices.
• Have documents ready.
• Attend inspections promptly.
• Avoid applying for properties clearly outside their budget.
• Consider units or townhouses where appropriate.
• Look at transport costs, not just rent.
• Think about lease renewal costs before moving.

The market may be improving, but affordability remains a central issue.

It is tempting to separate the rental market from the sales market. In reality, they are closely connected. If property prices rise rapidly, investors may find it harder to buy at attractive yields.

• If rents rise rapidly, yields can improve.
• If interest rates rise, holding costs increase.
• If investors sell, rental supply decreases.
• If owner-occupiers buy former rental properties, rental availability falls.
• If construction increases, both the sales and rental markets receive additional stock.

The two markets constantly interact. Perth’s strong sales-market growth therefore needs to be considered when analysing the rental market. This is where a local real estate agency becomes particularly important. National housing data can tell us:

• Australia has a 1.3 per cent vacancy rate;
• Perth has strong population growth;
• Rents are rising;
• Construction is constrained.

But it cannot tell a landlord exactly why one property in a suburb leased in 10 days while another took four weeks. That requires local knowledge. Property managers see:

• Inspection numbers;
• Tenant feedback;
• Price objections;
• Application quality;
• Competing properties;
• Landlord expectations;
• Tenant behaviour.

Those observations become extremely valuable when the market moves away from crisis conditions. For Bargoti Real Estate, this local perspective bridges headline data and practical property decisions.

For several years, the Perth rental market felt like a battle.

• Tenants wanted lower rents.
• Landlords faced high costs.
• Vacancy was extremely low.
• Every available home was valuable.
• The next phase should be more balanced.
• Good landlords need good tenants.
• Good tenants need professionally managed homes.
• Property managers need satisfied owners.
• Owners need sustainable returns.

And the broader market needs more housing. That is not a zero-sum relationship. A functioning rental market requires all sides to remain viable.

Final outlook: Perth has improved, but the rental shortage is not over

Perth’s rental vacancy rate reaching 2.2 per cent in July 2026 is undoubtedly a significant improvement compared with the extraordinary shortage experienced during the early 2020s. The market has come a long way from the 0.6 per cent vacancy rate recorded in late 2022. It even briefly reached the lower boundary of REIWA’s balanced-market range at 2.5 per cent in March 2025. The vacancy rate remains below REIWA’s 2.5–3.5 per cent balanced range.

• Rents remain high.
• Population growth remains strong.
• Rental supply remains below previous peaks.
• Investor participation is uncertain.
• Construction takes time.

Different datasets continue to show that Perth remains one of Australia’s tightest rental markets, even though the exact vacancy rate varies by methodology. That leads to the most important conclusion: Perth’s rental market is healing, but it has not fully recovered.

• For tenants, that means more choice — but not necessarily cheaper rent.
• For landlords, it means strong demand — but less room for unrealistic pricing.
• For investors, it means opportunity — but only when you consider purchase price, yield, location, and future supply together.
• For property managers, it means the market is becoming more sophisticated.

And for Perth itself, the biggest challenge remains unchanged: Can housing supply grow quickly enough to keep pace with population growth? That question will ultimately decide whether today’s rental relief becomes a genuine return to balance or merely a temporary pause.

Perth’s rental market has changed dramatically over the past four and a half years. From extreme scarcity to a vacancy rate of 2.2 per cent, the market has unquestionably improved.

• But 2.2 per cent is not 3 per cent.
• And 3 per cent is not the same thing as affordable housing.

The rental market can become less competitive without becoming affordable.

• It can have more listings without having enough homes in the right suburbs.
• It can have more construction without delivering enough completed rental properties.

And it can have a higher vacancy today while facing another shortage tomorrow. That is why the headline “Perth rental vacancy rates improve” should always be followed by a second sentence: “But what happens next depends on supply, population growth and investor participation.” For Perth landlords and investors, the opportunity now lies in moving beyond the crisis mindset. The market no longer rewards simply owning a property. It rewards owning the right property, in the right location, at the right price, and managing it with the right strategy.

• For tenants, the improvement offers cautious optimism. There is more choice than there was during the worst of the rental crisis.
• But affordability remains a challenge, and the most desirable homes can still attract strong competition. For the Perth market as a whole, the next 12 months will be critical.
• If supply continues to expand faster than demand, the city could finally move into a healthier rental environment.
• If population growth continues to outpace new rental supply — particularly if investors remain cautious — vacancy rates could tighten again.

That is why the current improvement should be welcomed, but not overinterpreted. Perth has not solved its rental shortage. It has simply moved closer to the point where a solution may finally be possible. And whether that opportunity is captured will depend on one thing above all else: Building and retaining enough homes for the people who want to live here.

The Perth rental market of 2026 is no longer the rental market of 2022. But it is also not yet the balanced market that Perth needs.

• The vacancy rate has improved.
• The pressure has eased.
• The rental market has become more competitive.
• But the underlying equation remains fragile.

Strong population growth + insufficient rental supply + cautious investors + slow construction = continued rental pressure. That is why the next phase of Perth property will be less about dramatic headlines and more about careful market reading. For tenants, landlords and investors alike, the winning strategy will be the same. 

• Understand the suburb. 
• Understand the property. 
• Understand the supply pipeline. 
• And understand what the tenant actually wants. 

Because in Perth’s next property cycle, local knowledge may matter more than ever.

Perth Rental Market 2026: Key Numbers at a Glance

Metric	Latest figure	What it tells us
Perth REIWA vacancy rate	2.2%	Improved, but below balanced range
REIWA balanced range	2.5–3.5%	Perth is still relatively tight
Perth median house rent	$750/week	Rental affordability remains stretched
Perth median unit rent	$700/week	Units remain an important alternative
Perth median house price	$950,000	Entry costs are significantly higher
Perth median unit price	$682,000	Units provide a lower entry point
WA population growth	2.2% annually- Dec 2025	Strong demand for housing
Baldivis median house rent	$680/week	Outer-suburban family demand remains strong
Baldivis annual rental growth	6.3%	Rent growth remains positive
Wellard median house rent	$700/week	Strong family and transport-oriented demand
Wellard annual rental growth	7.7%	Rental growth remains above Perth-wide levels
Belmont median house rent	$780/week	Inner-ring location commands a premium
Belmont annual rental growth	11.4%	Strong rental pressure in an established suburb
Rivervale median house rent	$745/week	Inner-ring demand remains resilient

Frequently Asked Questions

1. Is Perth’s rental vacancy rate improving in 2026?

Yes, compared with the extreme lows experienced during the rental crisis. REIWA reported a Perth vacancy rate of 2.2 per cent in July 2026, compared with much lower levels during 2022–2024. However, it remains below REIWA’s balanced range of 2.5–3.5 per cent.

2. Is 2.2 per cent a balanced rental market?

Not according to REIWA’s benchmark. REIWA considers 2.5 to 3.5 per cent a balanced market, meaning Perth at 2.2 per cent remains on the tighter side.

3. Are Perth rents falling in 2026?

Not broadly. REIWA’s latest data shows the median Perth house rent at $750 per week and the median unit rent at $700. House rents increased 1.4 per cent during the June 2026 quarter, while unit rents were stable.

4. Why are different organisations reporting different Perth vacancy rates?

REIWA, Cotality and SQM Research use different datasets, coverage and methodologies. For example, REIWA’s July 2026 figure was 2.2 per cent, while SQM Research’s July series put Perth at around 0.6 per cent. These figures should not simply be combined; they should be used to understand different aspects of rental-market conditions.

5. Could Perth’s vacancy rate fall again?

Yes. Strong population growth, limited rental construction and reduced investor participation could put renewed pressure on vacancies. REIWA has specifically raised concerns about rental supply and investor participation.

6. Is Perth still a good market for property investors?

Perth continues to offer strong population and rental-demand fundamentals, but the investment case is more selective than during the extreme rental shortage. Investors need to assess purchase price, rental yield, supply pipeline, tenant demand, location and holding costs rather than relying solely on past rental growth.

7. Which Perth suburbs are showing strong rental growth?

Current REIWA data shows examples such as Belmont, with 11.4 per cent annual rental price growth, Wellard at 7.7 per cent and Baldivis at 6.3 per cent.

8. Will Perth rents fall if vacancy reaches 3 per cent?

Not necessarily. A balanced vacancy rate would normally reduce rental pressure. Still, rent levels also depend on population growth, household incomes, construction costs, investor activity and the type and location of available properties.

9. Why is investor activity important?

Investors provide a substantial amount of Australia’s private rental housing. If investors sell properties and those homes move into owner-occupier ownership, the number of rental properties can decline. Conversely, renewed investor activity can add rental supply.

10. What should Perth landlords do as vacancy rates improve?

Landlords should focus on competitive pricing, property presentation, maintenance and tenant retention. Simply setting the highest possible rent becomes less effective as tenants gain more choice.

11. What should tenants do in the improving Perth rental market?

Tenants should still act quickly on good properties but should also compare comparable rentals, neighbouring suburbs and transport costs. The improving vacancy rate provides more choice, but Perth remains relatively tight.

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