The latest rental figures from a well-known Western Australian real estate platform have come under scrutiny, with advocates arguing that they present an inaccurate and overly optimistic view of Perth’s housing market.
Last week, the Real Estate Institute of WA revealed that Perth’s vacancy rate had climbed to 2 per cent in January, marking the first time it had reached this level since June 2020. They suggested that, if trends continue, the rental crisis may ease by mid-2025.
However, Circle Green tenant advocate and lawyer Alice Pennycott raised concerns that while the February quarter data suggested a noticeable improvement, a growing number of private rental listings were for “room only,” which skewed the overall figures. She also pointed out inconsistencies between REIWA’s data and other sources, with CoreLogic reporting a 1.5 per cent vacancy rate, SQM placing it at 0.4 per cent, and Domain estimating it at 0.6 per cent as of January 2025.
“An increasing number of single rooms in share houses being advertised on mainstream platforms artificially increases the vacancy rate and the perception of the number of rentals available – not to mention these types of accommodation arrangements are largely unregulated and can put vulnerable renters in precarious situations,” she said.
“This week there are only 63 rentals listed across Greater Perth for under $400 per week – but most of these are single rooms being advertised in a house the tenant would have to share with strangers.
“The increased vacancy rate does not represent more choice or affordability for renters, or better conditions or security for renters. We are nowhere near achieving a balanced market.”
REIWA chief executive Cath Hart explained that the organisation’s monthly rental vacancy rate is determined by calculating the proportion of vacant rental properties within a sample of total rentals across the Greater Perth region. This includes both occupied and unoccupied properties.
“Other outlets’ methodologies vary and may include snapshots of the number of advertisements on various online platforms, which might include single rooms, multiple rooms or entire dwellings,” she said.
“REIWA’s data is relied upon as a consistently credible source because of its approach does not distort local market conditions.”
Although different methodologies exist, there is broad agreement that the increasing median rental price—nearly doubling over the past five years—is placing additional strain on tenants already struggling with the cost of living crisis.
“Recent reports found the median household can’t afford the median rent, with the median household paying 33 per cent of their income on rent – anything above 30 per cent is defined as housing stress,” Pennycott said.
“With only two weeks until the election, it is disheartening that we still have seen no commitment to meaningful rental reform from parties despite the significant and ever-increasing evidence showing just how desperately it is needed.”
Pennycott, alongside Shelter WA, has advocated for an end to unfair evictions and the implementation of a rent stabilisation measure, such as a rent cap tied to the Consumer Price Index (CPI).
Shelter WA chief executive Kath Snell highlighted that while the rental crisis has been building for decades, the policies enacted in this election could play a crucial role in resolving it.
“One of our key asks is to establish a WA Affordable Rental Housing scheme to deliver 20,000 affordable new rental homes over the next 10 years,” she said.
“Investing in a rental supply scheme is a necessary and straightforward part of the solution, that shows commitment to solving the housing crisis over the next term.”
CoreLogic head of research Eliza Owen said Perth wasn’t out of the woods when it came to the rental crisis.
“Even though vacancy rates are shifting higher they are still very low and rent values are still rising, albeit at a slower place,” she said.
“It’s fortunate for politicians that the rental market is shifting, but it’s not necessarily to do with their policies and more likely comes back to broad demographic factors like more people share housing and a slowdown in net overseas migration.”
Owen emphasised the need for qualitative assessments of the rental market, as the vacancy rate alone only reflects numbers and does not account for factors such as property size, safety, and overall quality.
“But what is important is the trend, and it is slowly ticking upwards,” she said