Renting vs buying

Is It Cheaper to Buy Than Rent in Perth?

For many Perth renters, buying a home can feel like the natural next step. But new data shows that, in most Perth suburbs, the monthly cost of owning a house is still considerably higher than renting a similar property.

Research comparing median rents with estimated mortgage repayments found no Perth suburb where it was cheaper to buy a house than rent one.

The picture is different for units, where some suburbs now offer a much closer comparison between renting and buying.

Renting vs buying: what has changed?

The gap between renting and buying has grown considerably over the past few years.

The average Perth mortgage has increased much faster than rents. An average loan of around $720,000 now has an estimated monthly repayment of $4,428, compared with $1,902 in March 2022.

That represents a 132.8% increase in monthly repayments.

Over the same period, median rents increased by 62.2%.

Change since March 2022
Measure	March 2022	2026	Change
Average monthly mortgage repayment	$1,902	$4,428	+132.8%
Median rents	—	—	+62.2%

Source: REIWA. Mortgage comparison based on the average WA mortgage over 30 years at the variable large-institution owner-occupier rate.

Mortgage repayments have risen much faster than rents

Percentage increase comparing average mortgage repayments with median rents since March 2022.

0%35%70%105%140%

Mortgage repayment

Median rents

Source: REIWA

This helps explain why buying a home can be difficult for renters, even when they are already paying a significant amount in rent each month.

Where is buying a house closest to renting?

While buying is more expensive than renting across Perth’s house market, the gap is smaller in some suburbs.

Bullsbrook, Stratton and Midland are currently the closest options for renters considering buying in the same area. In these suburbs, estimated mortgage repayments are no more than 15% higher than the median monthly rent.

Most economical Perth suburbs to rent rather than buy a house

Median house price, rent and mortgage by suburb
Suburb	Median house price	Weekly rent	Monthly rent	Monthly mortgage	Difference
Bullsbrook	$800,000	$790	$3,423	$3,936	$513
Stratton	$755,000	$730	$3,163	$3,715	$552
Midland	$710,000	$685	$2,968	$3,494	$525
Langford	$780,000	$750	$3,250	$3,838	$588
Huntingdale	$822,500	$780	$3,380	$4,047	$667
Beckenham	$850,000	$800	$3,467	$4,182	$716
Bentley	$850,000	$800	$3,467	$4,182	$716
Brabham	$874,250	$820	$3,553	$4,302	$748
Midvale	$800,000	$750	$3,250	$3,936	$686
Cannington	$802,500	$750	$3,250	$3,949	$699

Source: REIWA. Sale prices are August 2026 medians. Rent figures cover the three months to August 2026. Mortgage estimates assume a 20% deposit, 30-year loan and 6.24% variable rate.

These figures don’t mean buying is necessarily a poor financial decision. They simply show that, based on current prices, rents and mortgage rates, renting requires a lower monthly payment in these suburbs.

Units tell a different story:

The unit market is much closer.

There are eight Perth suburbs where the median monthly mortgage is lower than the median monthly rent, according to the research.

Glendalough stands out. Its estimated monthly mortgage is $2,505, compared with median rent of $2,947, making buying around $442 per month cheaper on these figures.

West Leederville and Belmont also show relatively small gaps.

Perth units: rent compared with buying

Median unit price, rent and mortgage by suburb
Suburb	Median unit price	Weekly rent	Monthly rent	Monthly mortgage	Difference
Glendalough	$509,000	$680	$2,947	$2,505	$442 cheaper to buy
West Leederville	$665,000	$790	$3,423	$3,272	$151 cheaper to buy
Belmont	$596,000	$700	$3,033	$2,933	$101 cheaper to buy
Cannington	$619,000	$720	$3,120	$3,046	$74 cheaper to buy
Perth	$648,000	$750	$3,250	$3,189	$61 cheaper to buy
Cloverdale	$605,000	$700	$3,033	$2,977	$56 cheaper to buy
Beckenham	$565,000	$650	$2,817	$2,780	$37 cheaper to buy
Northbridge	$660,000	$750	$3,250	$3,248	$2 cheaper to buy
East Perth	$690,000	$780	$3,380	$3,395	$15 higher to buy
Wembley	$557,475	$630	$2,730	$2,743	$13 higher to buy

Source: REIWA. Figures are based on August 2026 sale prices and rental data for the three months to August 2026.

Monthly rent compared with mortgage repayments

Selected Perth suburbs where buying a unit is closest to, or cheaper than, renting.

Glendalough

West Leederville

Belmont

Cannington

Perth

Cloverdale

Beckenham

Northbridge

East Perth

Wembley

$0$900$1,800$2,700$3,600

Monthly rentMonthly mortgage

Source: REIWA. Monthly figures based on August 2026 data.

Why do people still choose to rent?

The numbers also highlight something important: renting is not always about being unable to buy.

Some people rent because they are waiting for a new home to be completed, working in an area temporarily or wanting to live in a suburb where buying is outside their budget.

Location can also make a major difference.

For example, the median monthly mortgage repayment for a house in Shenton Park is $12,424, compared with median rent of $4,450. That is a difference of $7,974 per month.

In Rossmoyne, the median monthly rent is also $4,450, while the estimated mortgage repayment is $10,579.

For some households, paying rent can therefore be the more practical way to live in a particular suburb.

What does this mean for Perth’s rental market?

The figures also show why a rental property cannot simply be replaced by a buyer when an investor decides to sell.

A tenant may not have the deposit required to buy, may not be able to service a mortgage or may simply prefer renting at that stage of their life.

For property owners and investors, this is another reminder of the important role rental properties continue to play in Perth.

For tenants, the data provides a useful way to compare the cost of staying in a rental with the potential cost of buying in the same suburb.

Renting or buying depends on more than the monthly payment

The monthly figures are useful, but they are not a complete comparison of the total cost of home ownership.

Buying also involves a deposit and other costs associated with purchasing and owning a property. On the other hand, owning a home provides an asset and builds equity over time.

The right choice will depend on a person’s finances, plans, preferred location and how long they expect to stay.

What the latest Perth data does show clearly is that renting remains cheaper than buying a house on a monthly-payment basis in every suburb covered by the research, while some parts of the unit market are now much closer to the cost of renting.

What this means for property owners

For landlords and investors, the figures reinforce the continued need for a healthy rental supply across Perth. With buying still out of reach for many renters, well-managed rental properties remain an important part of the housing market.

At Mavin Real Estate, we help property owners manage their investment with a practical, hands-on approach, from keeping on top of maintenance and inspections to communicating with tenants and managing the day-to-day responsibilities of the property.

Source: REIWA data published 29 September 2026. Mortgage calculations are based on a 20% deposit, 30-year mortgage and 6.24% variable owner-occupier rate.