Shellabears Blog
WA’s Housing Shortage Explained in 30 Seconds
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Category: Agent Insights
There’s plenty happening in the WA property market, with Perth continuing to outperform the national average and new milestones being hit across the state. From price growth and rental pressures to population gains and shifting interest rate expectations – here’s a quick snapshot of the key trends driving the market right now.
The PropTrack Home Price Index report for June 2025 shows Perth continues to perform well compared to the national average. Across the nation, regional areas continue to exceed expectations.
- Rental affordability has worsened in the past 12 months to its lowest level since 2008
- QUESTION – What do Parkerville, Lake Grace, Dunsborough, Casuarina, Kingsley, Riverton, Kalamunda and Palmyra all have in common?
- ANSWER – All are now members of $1,000,000 suburb club. WA now has 56 suburbs with an average home price over $1 million
- 1st August (2025) reported inflation figures show headline inflation sitting at 2.1% and the trimmed mean inflation (the RBA’s preferred measure) at 2.7% which sits within the RBA’s target range of 2-3% so we may well expect two interest rate reductions this calendar year
- WA’s population grew by 2.4% last year to exceed 3 million people for the first time with net migration of 58,000 people into the state. If you assume 2.5 people per household that is 23,000 new homes required without considering local demand. Balance this against new dwelling completions for the past year of 20,600 and you see the ongoing imbalance of supply and demand supporting the growth in values.
