Housing Takes Centre Stage in the Federal Election – What Does It Mean for WA?

Housing affordability and supply issues are being felt nationwide, but the pressures in Western Australia are particularly acute and demand tailored, local solutions within broader national strategies.

WA continues to face one of the country’s most constrained rental markets, with the vacancy rate sitting below 1 per cent for much of the past year. This has placed immense strain on renters and created ongoing challenges for property investors and first-home buyers. While it’s positive that housing has become a key issue in the federal election campaign, REIWA stresses that solutions must reflect WA’s specific circumstances—not just cater to the Eastern States.

The national ambition to deliver 1.2 million new homes is a strong starting point, but progress has fallen short. If this target is to be met, particularly in WA, meaningful reform is needed. That includes overhauling planning systems, speeding up land releases, and expanding the construction workforce.

Ultimately, increasing supply is the only sustainable way to ease housing pressure. It will take more than promises—it will require well-targeted federal investment and policy reform to remove bottlenecks, streamline approvals, and support the skilled trades essential to building the homes WA needs.

REIWA backs several of the housing initiatives put forward by both major parties—particularly those aimed at assisting first home buyers—but stresses that demand-side policies must be matched with genuine action to boost housing supply.

Programs such as the Home Guarantee Scheme can be helpful in helping buyers enter the market more quickly. However, without increasing housing stock, these measures risk fuelling price growth—especially in a highly competitive market like Perth’s, where supply remains critically tight.

Importantly, both Labor and the Coalition have pledged to maintain existing negative gearing and capital gains tax arrangements—settings REIWA strongly supports as they play a vital role in supporting investor confidence and keeping rental supply stable. On the other hand, the Greens’ continued call to abolish negative gearing is misaligned with the reality of WA’s rental crisis and could worsen affordability and availability for tenants.

A recent survey on reiwa.com highlighted just how sensitive WA’s rental market is to policy shifts—83% of investors said changes to property tax would impact their decision to sell their investment properties. This reinforces the need for stability. Now is not the time to disrupt the private rental market with short-sighted tax reform. What’s needed is practical, consistent policy that supports investment and boosts housing supply.

While it’s encouraging to see housing take centre stage in the federal election, talk is not enough. The next government must deliver on promises, ensure accountability, and implement housing policies that work for all Australians—including Western Australians facing unique market pressures.