Is Perth’s Rental Squeeze Easing? Vacancy Rate Climbs to 2%

Perth’s rental vacancy rate increased to 2 per cent in January 2025, up from 1.9 per cent in December 2024. This marks the first time the vacancy rate has reached 2 per cent since June 2020.

REIWA CEO Cath Hart noted that Perth has experienced a prolonged period of low vacancy rates.

“The vacancy rate reflects the balance of supply and demand, and we have seen these factors shift over the past six months,” she said.

“Demand has been self-regulating, with more tenants opting for shared living arrangements, some choosing to buy instead of rent, and others staying in or returning to the family home to avoid the rental cycle.

“Additionally, new investor-built properties have been completed and entered the market, increasing supply. Some tenants have also moved into their newly completed homes, freeing up existing rental stock.

“These changes have contributed to the rise in the vacancy rate.”

Ms Hart emphasised that while the overall vacancy rate has risen, conditions vary across different areas of Perth.

“Anecdotally, demand remains strong in suburbs closer to the city, keeping vacancy rates low in these areas,” she said.

“In contrast, locations where a significant number of new builds have recently become available are experiencing longer leasing times.”

REIWA considers a vacancy rate between 2.5 and 3.5 per cent indicative of a balanced market. The last time Perth’s vacancy rate reached 2.5 per cent was in September 2019.

“If current trends persist, Perth’s vacancy rate could reach equilibrium by mid-2025,” Ms Hart said.

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