‘Unsustainable’: Why Perth’s falling house prices won’t fix the city’s rental crisis

Key points

• Perth's rental market remains tight despite falling property prices, with median weekly rents holding at $750. Domain's chief economist, Dr Nicola Powell, attributes this to insufficient rental supply and investor caution due to stagnant capital growth.
• The vacancy rate has dropped to 0.4%, indicating high demand. Shelter WA's Kath Snell highlights the unsustainable nature of current rents, which consume half the income of those earning $100,000.
• She advocates for a rent cap to alleviate the housing crisis, as many renters struggle to afford basic needs.