Perth’s property market is in the midst of a dramatic transformation, with a surge in population growth and an influx of overseas arrivals intensifying the battle for affordable homes. As Western Australia cements its status as Australia’s fastest-growing state, the city’s reputation for accessible housing is being put to the test—leaving both buyers and renters scrambling to keep up.
According to recent data from the Australian Bureau of Statistics, Western Australia’s population grew by 2.4% in 2024, adding 70,300 new residents. Of these, a striking 64.2% were overseas migrants, many of them skilled professionals eager to settle in Perth’s family-friendly suburbs. Peter Gavalas of Resolve Property Solutions told Macrobusiness, “Many new arrivals are professionals with stable incomes, looking to build long-term lives in Perth. They’re targeting family-friendly, well-connected areas and are often ready to act quickly, which is putting added pressure on supply at the affordable end of the market.”
Perth has historically been seen as one of the more affordable capital cities in Australia, but that perception is changing fast. The city now boasts one of the country’s highest shares of overseas-born residents, and the competition for homes under $1 million is fierce. “International buyers are attracted by Perth’s lower entry prices, strong job market and lifestyle benefits, including quality education and transport links,” Gavalas explained. “A budget of $750,000 to $900,000 still stretches far here, especially when compared to Sydney or Melbourne.”
But stretching that budget is getting harder. The Real Estate Institute of Western Australia reports that the median days on market for Perth properties dropped to just 12 in July 2025, leaving buyers with little time to act. Active listings also plummeted to a 12-month low of 3,382, as many potential sellers delayed listing their homes until spring. For buyers—especially those unfamiliar with the local market—the pressure is on. “In many areas, buyers need to act fast, make strong offers and be prepared for multiple competing bids,” Gavalas warned. “This can be especially tough for overseas buyers who aren’t familiar with the local market.”
Gavalas strongly recommends that newcomers seek expert help early in the process. “Understanding buying conditions, auctions and how to make a compelling offer is so important in a competitive market like Perth,” he said. “Having a local representative can help buyers avoid costly mistakes and overpaying.”
Adding further fuel to the fire, the Reserve Bank of Australia cut interest rates by 0.25% in August 2025, a move that economists believe will entice even more buyers back into the market. Another rate cut later in the year remains a possibility, which could further stoke demand in an already overheated market. “There are still good opportunities in Perth for both local and international buyers,” Gavalas said. “But my message is clear: do your research, move quickly and get local guidance.”
While home buyers face mounting challenges, renters are also feeling the squeeze. At the end of 2024, Australian rental affordability hit a record low, with the median household now spending 31% of their income on rent, according to Cotality (formerly Corelogic). National median rents have soared by 43% over the last five years, forcing the average tenant household to shell out an additional $10,350 per year.
The situation is only worsening. Cotality economist Kaytlin Ezzy noted that rental growth reaccelerated in mid-2025 for the first time in 16 months, sparking fresh concerns about affordability and inflation. The Australian Bureau of Statistics reported that in the first half of 2025, a record 279,460 net permanent and long-term arrivals landed in Australia—a 5% increase from the previous year and a staggering 64% jump from the same period in 2019, before the pandemic. This surge in migration is tightening rental vacancies and driving up demand.
Cotality’s July 2025 housing report observed that “rental vacancy rates [are] holding close to historic lows, tracking at 1.7% nationally in July.” The story is similar across the country, with SQM Research reporting just 37,863 rental vacancies nationwide in July 2025, down from 39,027 the previous month and 39,701 a year earlier. “Vacancy rates remain tight across most capital cities, and this is continuing to place upward pressure on rents,” Louis Christopher, Managing Director of SQM Research, told Macrobusiness. “While there are short-term fluctuations—particularly in Perth and Canberra—the broader trend is clear: rental affordability is deteriorating.”
Indeed, asking rents continue to surge, especially for houses. The Albanese government recently announced an increase in the planned level for international students by 25,000, raising the cap to 295,000 for 2026. At the same time, it has relaxed English-language requirements for visa holders, further boosting temporary migration. Australia’s international student and temporary visa numbers are already the highest in the advanced world compared to its population, and these changes are expected to add even more pressure on an already strained rental market.
For many, the dream of affordable living in Perth—or anywhere in Australia—seems to be slipping further out of reach. The combination of record migration, dwindling housing supply, and surging rents is creating a perfect storm for both buyers and renters. As Gavalas put it, “Understanding the local market and acting quickly is more important than ever.”
With no sign of population growth slowing and the government’s migration targets set to rise, the battle for affordable homes in Perth and across Australia looks set to continue. For now, those seeking a place to call home—whether buying or renting—will need to bring their A-game, do their homework, and, perhaps most importantly, be ready to move fast.
