Media Statement: Shelter WA and Tenant advocates question vacancy as sector calls for step change for renters this election

Vacancy rates questioned as sector calls for step change for renters this election.

26 February 2024

Shelter WA and tenant advocates respond to the February quarter rental data released by REIWA.

Findings

• There are 3,408 rental properties listed across the whole of WA, with 2500 in Greater Perth according to realestate.com.au
• An increasing number of private rental properties are for ‘room only’, which distorts the vacancy rate and true picture of the rental market
• For Greater Perth there are currently just 63 rentals listed under $400 per week – but just 16 of these listings (25%) are for the whole house/apartment. The rest are ‘room only’.
• In other words, 75% of all rental listings under $400 per week are SINGLE ROOMS.
• The inconsistency between REIWA’s vacancy rate with other official sources is of concern.

Quotes attributable to Alice Pennycott, tenant advocate and lawyer, Circle Green

“We are concerned the vacancy rate paints an unrealistic and even inaccurate picture of the rental market. An increasing number of single rooms in share houses being advertised on mainstream platforms artificially increases the vacancy rate and the perception of the number of rentals available – not to mention these types of accommodation arrangements are largely unregulated and can put vulnerable renters in precarious situations.

“This week there are only 63 rentals listed across Greater Perth for under $400 per week – but most of these are single rooms being advertised in a house the tenant would have to share with strangers.

“The increased vacancy rate does not represent more choice or affordability for renters, or better conditions or security for renters. We are nowhere near achieving a balanced market.

“The median rent price just went up again for February 2025 and rents have almost doubled in five years, so renters won’t see any benefit of any increase in vacancy rates for a long time yet – if in fact these rates are accurate at all.

“Recent reports found the median household can’t afford the median rent. Median households are paying 33% of their income on rent – anything above 30% is defined as housing stress.

“With only two weeks until the election, it is disheartening that we still have seen no commitment to meaningful rental reform from parties despite the significant and ever-increasing evidence showing just how desperately it is needed.

“This is we’re continuing to call for an end to unfair evictions, and the introduction of a reasonable rent stabilisation mechanism such as a rent cap linked to CPI, so the one-third of West Australians who rent can live in safe, secure, and affordable homes.

“All West Australians are feeling the pressure of the cost-of-living crisis, but renters are especially impacted, with ever-increasing rents and still no housing security or stability.”

 

Quotes attributable to Shelter WA CEO Kath Snell

“This election we need all parties to show they are prepared to do what needs to be done to see real change. While the rental crisis took decades in the making, it could be resolved by the decisions taken this election.

“One of our key asks is to establish a WA Affordable Rental Housing scheme to deliver 20,000 affordable new rental homes over the next ten years. We also need to save those remaining 2000 (approx) National Affordable Rental Scheme (NRAS) properties.

“Investing in a rental supply scheme is a necessary and straightforward part of the solution, that shows commitment to solving the housing crisis over the next term.”

Shelter WA’s Election platform makes 40 recommendations including the following to solve the rental crisis:

• More intervention into the short-term rental accommodation (STRA) market until the vacancy rate is healthy. Simply bringing forward the WA Government’s regulatory changes (due to take effect 1 Jan 2026) and further reforms (night caps, geographic bans, cap and trade) until the vacancy rate is healthy would bring thousands of rentals back into the market or at least prevent more from being listed, until the crisis is solved.
• Commit to a WA affordable rental housing scheme that will deliver 20,000 affordable rentals over the next decade; save the remaining ~3000 National Rental Affordable Scheme properties before they exit the scheme.
• Make renters’ lives more secure, affordable and stable by urgently progressing rent reforms promised in 2019, including introducing rent caps, minimum standards, and abolishing no grounds evictions
• Expand the existing Rent Relief program beyond June 2025 to stem the flow from renting into homelessness and broaden eligibility to include boarders and lodgers, as well as financially stressed households before they get into arrears.

 

Quick stats

• At February 2025 there are 10,755 listings for entire homes/apartments on Airbnb. This means for every one long-term private rental listed in WA, there are three Airbnb’s. (Source: https://insideairbnb.com/western-australia/)
• Perth is the country’s second most expensive rental capital at $695 p/w, overtaking Canberra at $667 p/w. Sydney is the most expensive at $773 p/w.
• Median-income households are now paying 33% of their income on rent – the highest portion since CoreLogic started tracking rental affordability in 2006.(Source: Core Logic December 2024 rental data ) – anything above 30% is defined as housing stress.
• Rents in Perth increased by 88% since pre-pandemic (and even higher in outer metro suburbs like Armadale where it’s as much as 120%), roughly five times the rate of inflation, from $400 a week in July 2019 to $752 in February 2025 (Source: SQM Research Weekly Rents for Perth)

 

Sources and notes on how Vacancy Rates are calculated

• REIWA - “Vacancy rates are collated via a survey, the accuracy is contingent on the sample of responses received from REIWA members”. REIWA represents 90% of the sector.
• Core Logic – methodology not published, but did confirm that vacancy rates include ‘room only’ listings. If a few rooms at the same address are posted around the same time – this will be counted as just one new listing. However, if Room 1 is listed in January 2024 and Room 3 is listed in May 2024, they will be considered two separate new listings from the same address.
• SQM Research – calculates rental vacancy rates by comparing the number of online rental listings that have been advertised for at least three weeks to the total number of established rental properties. SQM believes this is a better methodology than using agency surveys or just relying on raw online listings. We don’t think they use single rooms but haven’t been able to confirm

 

SQM Source: https://sqmresearch.com.au/graph_vacancy.php?region=wa%3A%3APerth&type=c&t=1

REIWA source: https://reiwa.com.au/the-wa-market/rental-vacancy-rates/