Perth’s rental market has been one of Australia’s strongest performers in recent years, with rising rents, low vacancy rates, and fierce competition becoming the norm. As we move through 2026, many renters, investors, and homebuyers are asking the same question: are Perth rents still increasing, or is the market finally beginning to stabilise?
The short answer is yes, but the pace of growth is starting to moderate.
Demand Continues to Outweigh Supply
The biggest reason rents remain high in Perth is simple: there still aren’t enough rental properties to meet demand.
Western Australia continues to experience strong population growth, with interstate migrants and overseas workers relocating to Perth for employment opportunities. At the same time, the supply of available rental homes has struggled to keep up.
This imbalance means quality rental properties are often leased quickly, with many attracting multiple applications shortly after being listed.
| Year | Approximate Rental Growth | Overall Trend |
|---|---|---|
| 2021 | 8–10% | Growing |
| 2022 | 15–18% | Strong Growth |
| 2023 | 18–22% | Rapid Growth |
| 2024 | 10–14% | Strong Growth |
| 2025 | 5–8% | Moderate Growth |
| 2026 | 3–6% (forecast) | Steady Growth |
Vacancy Rates Remain Tight
Although vacancy rates have improved slightly compared to previous years, they remain well below the level considered a balanced rental market.
A low vacancy rate gives landlords greater pricing power because tenants have fewer options. As a result, many lease renewals continue to include rent increases, while newly listed properties often command higher weekly rents than they did just a year ago.
However, compared to the rapid rental growth seen during 2023 and 2024, increases in 2026 are becoming more measured.
Investors Are Returning to the Market
Higher rental returns have encouraged more investors back into Perth’s property market.
Strong rental yields continue to make Perth attractive compared to many eastern state capitals, particularly for investors seeking positive cash flow. As more investment properties are purchased, additional rental stock gradually enters the market.
While this won’t solve the housing shortage overnight, it should help ease pressure over the coming years if investor activity remains strong.
Affordability Is Becoming a Challenge
Despite Perth remaining one of Australia’s more affordable capital cities, rental affordability has become increasingly difficult for many households.
Higher rents, combined with broader cost-of-living pressures, are forcing some tenants to reconsider where and how they live. More people are choosing to share accommodation, move further from the CBD, or remain in the family home for longer.
These changing living arrangements are becoming an increasingly common response to rising housing costs.
What This Means for Renters
For tenants, competition remains strong, particularly for well-presented homes in desirable suburbs.
Being organised before applying, having references, proof of income, and required documentation ready—can improve the chances of securing a property quickly. Flexibility around suburb choice and property type may also open up more affordable options.
While conditions remain competitive, renters may find slightly more choice than during the market’s peak.
What This Means for Investors
For property investors, Perth continues to offer an attractive combination of solid rental demand and relatively affordable purchase prices.
Although rental growth is expected to continue, investors should focus on long-term fundamentals rather than expecting the exceptional rent increases seen in recent years. Properties close to transport, schools, employment hubs, and lifestyle amenities are likely to remain in strong demand.
The Bottom Line
Perth rents are still rising in 2026, but at a slower and more sustainable pace than in previous years. Strong population growth, limited rental supply, and ongoing housing shortages continue to support the market, even as conditions gradually begin to stabilise. For renters, affordability remains a challenge, while investors continue to benefit from one of Australia’s strongest rental markets.