Supply issues are hurting rental market in the west
Middle East war's effects on petrol prices putting pressure on housing costs and the rent situation in Western Australia.
HIGH fuel prices are hurting motorists, truckers and farmer but now Australia’s building industry is taking a hit from the Middle East conflict.
The Real Restate Institute of WA says members are especially concerned about the rental market.
“Rising oil prices are already putting upward pressure on building costs and are also causing delays in the supply of materials,” REIWA Deputy President Rob Mandanici said.
“COVID showed us what can happen when there are serious challenges in the building industry.
“More people look to the established market for homes to buy or rent.
“This increases demand and puts upward pressure on prices. The effect is magnified when there are supply constraints in the established market.”
Mandanici says WA saw a mass exodus of investors during the pandemic.
An estimated 20,000 rental properties were removed. This led to soaring rents and plummeting vacancy rates.
“The market has improved but supply remains below the peak recorded in early 2021 and WA’s population growth is still strong,” he said.
“People moving to our state often rent before they buy or build, and people rent while building.
“Delays in building timeframes and rising costs will keep more people in the rental market longer but without a corresponding increase in supply.
“Compounding our concerns are talks about changes to capital gains tax, negative gearing and tenancy legislation.”
Perth’s median dwelling rent rose 1.4 per cent in March to $720 per week. This was 5.9 per cent higher than March 2025.
There were 1870 properties for rent on www.reiwa.com at the end of March.
This was 0.4 per cent lower than in February and 11.1 per cent lower than the same time in 2025.
“Active listings have decreased each month this year,” Mandanici said.
“While not overly alarming at this point, these figures bear watching.”
