Perth’s rental market continues to be one of the most closely watched in the country — and for good reason. Rents are at record highs, properties are leasing quickly, and demand from tenants continues to outpace available supply across most suburbs.

As we head into the second half of the 2025–26 financial year, here’s a clear-eyed look at what the data shows — and what it means if you own an investment property in Perth.

Where the Perth Rental Market Stands Right Now

According to the latest REIWA data, Perth’s median weekly house rent closed 2025 at a record $700, while units reached $680 per week — both representing record highs. Rental growth has moderated from the sharp pace of 2023 and 2024, which is actually a healthy sign for long-term market stability.

Properties are still leasing quickly. The median days to lease across Perth has been hovering around 16 days for most of the year — a figure that reflects persistently high tenant competition, particularly in suburbs close to the CBD and lifestyle hubs.

Perth’s vacancy rate has been sitting between 2% and 2.5% — still below the 2.5–3.5% range that REIWA defines as a balanced market. In other words, the market continues to favour landlords, even as conditions gradually normalise from the record lows seen in previous years.

What’s Driving Ongoing Rental Demand?

The fundamentals underpinning Perth’s rental market haven’t changed. A few key factors remain at play:

Population Growth

Western Australia’s population recently surpassed 3 million for the first time, making it the fastest-growing state in the country. With population growth running at 2.2% annually, demand for rental housing continues to build.

Housing Supply Can’t Keep Up

Only around 22,600 new homes were built in WA in the 2024–25 financial year — well short of what’s needed to keep pace with population growth. New listings in the established market also remained below long-term averages through the latter part of 2025, keeping supply constrained.

Affordability Redirecting Buyers to Rentals

As Perth property prices have climbed — the median house price ended 2025 at $840,000 — many would-be buyers are remaining in the rental market longer. This is particularly evident in inner-city suburbs and well-connected lifestyle precincts.

What the 2026 Forecasts Are Telling Us

REIWA’s 2026 market forecast points to continued price growth across both the sales and rental markets, albeit at a more measured pace. Key projections include:

• Median house prices forecast to rise more than 10% in 2026
• Unit prices projected to grow 15–20%, outpacing house price growth for the second consecutive year
• Rental growth expected to remain steady, with continued upward pressure in areas close to the city and key transport infrastructure
• Vacancy rates likely to stay below balanced market levels in inner and middle-ring suburbs

The interest rate environment adds some uncertainty. After three rate cuts in 2025, the general consensus heading into 2026 is that further reductions are unlikely — and some economists are flagging the possibility of increases. For investors, this underscores the importance of getting the fundamentals right: pricing, presentation, tenant quality, and active management.

What This Means for Perth Landlords

If you own an investment property in Perth, the current market conditions remain favourable — but they do require a more considered approach than the emergency-level demand of 2022 and 2023.

A few things worth keeping in mind:

Rent Reviews Need to be Evidence-Based

The days of automatic above-market increases are largely behind us. Tenants are more informed, and the new WA rent reform provisions — which came into effect in 2025 and were further updated in 2026 — mean the process needs to be done correctly. Rent reviews that are grounded in local market data and handled professionally will continue to deliver results.

Location Matters More Than Ever

Conditions are not uniform across Perth. Inner-city and middle-ring suburbs continue to see strong competition and tight vacancy rates. Outer suburbs with high levels of new stock are experiencing more movement and, in some cases, longer leasing times. Understanding the micro-market your property sits in is critical to pricing and positioning it correctly.

Presentation and Maintenance Drive Outcomes

In a normalising market, well-presented, well-maintained properties consistently attract the best tenants and achieve the strongest results. Deferred maintenance and dated presentation are no longer hidden by extreme market conditions — they affect your outcome.

Is Now a Good Time to Rent Out Your Perth Property?

For property owners considering whether to enter the rental market — or those weighing up a sale versus holding and renting — the current market presents a compelling case.

Rents are at record highs. Properties in well-located Perth suburbs are leasing in under three weeks. Demand from quality tenants remains strong. And with unit prices forecast to grow 15–20% in 2026, the capital growth story also continues to be attractive.

The key is making sure your property is managed correctly from day one — right pricing, thorough tenant selection, and proactive management to protect the asset and minimise vacancy.

How Blackburne Can Help

At Blackburne Property Management, we manage more than 1,100 properties across Perth and have a detailed, on-the-ground understanding of how the market is performing suburb by suburb.

Whether you’re an existing landlord looking to benchmark your property’s performance, or a property owner thinking about making the move into the rental market, we’d welcome the conversation.

Our average days to lease across the portfolio sits at 8 days — well below the Perth metro median. Our average vacancy rate across managed properties is 1.3%. These aren’t marketing claims — they’re the results of consistent, expert management.

If you’d like a free market appraisal to understand what your property could be earning in the current market, get in touch with our team today.