2025–26 State Budget Delivers Housing Support

Housing Affordability and Accessibility

While the increase in stamp duty thresholds is a welcome step, there are calls for these thresholds to be tied to current market trends, including the annual median house price, which stood at $780,000 in May 2025, and the lower quartile price range. This approach would ensure the concessions remain relevant and accessible to more buyers. Similarly, the $2,000 Home Buyers Assistance Account grant—though recently raised from $400,000 to $500,000—still excludes many buyers, as only 8.5 per cent of dwellings sold in Greater Perth this year were priced below $500,000, and only 16.5 per cent of those were houses. Linking the grant threshold to the median price could help more buyers benefit from this support.

Rental Market:

The WA Rent Relief Program has been extended until 31 December 2025, offering continued support to tenants facing hardship. In addition, $75 million has been committed to the Build-to-Rent Kickstart Fund, which will provide low and no-interest loans for up to 10 years to help deliver more rental housing. Government backing is seen as essential to make these developments financially viable, especially in light of current construction industry challenges. While the impact won’t be immediate, these projects are expected to help meet future demand as the population grows.

Social Housing

A total of $246 million has been allocated for 548 new social and affordable homes, delivered in partnership with community housing providers and the Federal Government’s Housing Australia Future Fund. Another $177.4 million will go toward maintaining existing social housing. The social housing waitlist has grown 38 per cent over the past five years, now standing at around 20,700 applicants. The latest housing reports recommend the delivery of at least 1,200 new or repurposed social housing dwellings per year to help meet growing demand.

Regional Housing

To support regional areas, $104 million has been committed to doubling the Government Regional Officer Housing (GROH) construction program, with over 100 new homes planned between 2026–27 and 2028–29. An additional $25 million over four years will go to the Regional Housing Support Fund, offering grants of up to $5 million to boost housing and land supply across WA. A $43 million investment will also fund 169 residential lots in Mulataga, Karratha, partially supported by the Federal Government. The ongoing shortage of GROH has placed pressure on regional rental markets, prompting suggestions that modular housing could offer a quicker solution.

Construction

The Budget includes $101 million from the $400 million Housing Enabling Infrastructure Fund to deliver 21 projects across Perth and key regional areas, unlocking about 33,000 new residential lots. A further $49 million will be used to grow the construction workforce, with support for 1,000 apprentices and expanded access to free TAFE courses in the trades. An additional $50 million is allocated to the Housing Innovation Fund to support faster and more efficient building methods. While infrastructure like wastewater systems and power substations is essential, delays with land titles and energisation are continuing to slow home completions, keeping buyers in rentals longer and restricting supply across the board.

Cost of Living – Housing

To help ease cost-of-living pressures, $337 million has been allocated to the State’s Residential Battery Scheme, complementing a similar Federal initiative. The scheme is expected to benefit 100,000 households by offering no-interest loans for battery storage systems, with eligibility extended to households earning under $210,000. By improving access to solar energy, the initiative aims to reduce electricity costs and broaden the reach of renewable energy solutions.

Market Outlook

According to State Government forecasts, Perth’s median house price is expected to rise 18 per cent in 2024–25, before moderating to 4.3 per cent in 2025–26 as population growth slows and housing completions increase. WA’s population rose 2.4 per cent in the year to December 2024, with projected growth of 1.9 per cent for 2024–25 and 1.8 per cent for 2025–26. Housing completions rose by 18 per cent in 2024 to more than 20,600—the highest level in seven years. With approvals up 45 per cent to 23,000—the strongest in the country—further increases in completions are anticipated in the coming year.