Rental Market Trends

Perth Rental Market Trends: What Landlords Need to Know in 2026

The Perth rental market has entered a new phase of stability in 2026. While the extreme “crisis” conditions of recent years have softened, the market remains highly favourable for landlords due to persistent undersupply in key areas. For investors, understanding these shifting numbers is the key to maintaining strong yields.

Vacancy Rates:

Perth’s vacancy rate has finally climbed toward a “balanced” level—the first time since 2019.

Current Vacancy Rate: Approximately 2.5% (REIWA November 2025), up from the sub-1% lows of 2024.
Market Context: A rate between 2.5% and 3.5% is considered balanced. While availability has improved, demand remains strong, with properties leasing in an average of 16 to 18 days.
The Landlord Impact: Tenants have more choice now, particularly in outer suburbs. High-quality property presentation and accurate pricing are now more important than ever to secure reliable tenants quickly.

Rental Prices:

Rent increases have moved from “rapid spikes” to “steady growth.” As of early 2026, Perth remains one of the most affordable capital cities relative to local incomes, providing room for continued stability.

Property Type

Median Weekly Rent

Houses

$700

Units

$670

Sources: REIWA

Supply and Demand:

The market is currently split between the “outer-fringe” and “inner-city” rings:

Outer Suburbs: Increased supply from completed new-builds has eased pressure in areas like Baldivis and Alkimos.
Inner/Middle Rings: Supply remains critically tight near the CBD and coastal hubs. These areas continue to see vacancy rates well below the 2.5% average.

Landlord Takeaways:

Focus on Yield: Perth continues to offer competitive returns, with gross yields for dwellings averaging around 4.2%. 3.7% for houses and 4.7% for units (SQM).
Compliance Matters: Please note that under the WA rental reforms, rent increases are limited to once every 12 months, and rent bidding is strictly prohibited. However, if a lease ends and a new tenant moves in, the landlord can set a new market rate.
Retention is Key: With vacancy rates rising, keeping a great tenant is often more profitable than a higher-priced turnover.

Perth in 2026 is a “mature” market. The shortage of new housing stock ensures that rental demand will stay high, even as vacancy rates normalize.

Would you like a complimentary 2026 rental appraisal for your specific suburb to see how your property measures up?