The long list of Perth postcodes where renting is unaffordable

Rental affordability has declined rapidly in Perth and regional WA in the past year, with hospitality workers and others on low incomes among those bearing the brunt of the crisis.

The latest Rental Affordability Index report produced by National Shelter-SGS Economics and Planning shows affordability for average income households in Perth has plummeted 10 per cent in the past year, the second-biggest drop in the nation behind Sydney.

A single person on JobSeeker would have to spend more than their entire income for a median rental in Perth or regional WA while a single pensioner would have to pay more than 70 per cent.

The report found many Perth households well below the average rental household income of $103,805 per year are struggling to find an affordable rental in the current market with exceptionally low vacancy rates across WA.

Since mid-2020, rents in Perth have increased by 52.4 per cent. Meanwhile, incomes have increased by just 12.1 per cent.

National Shelter chief executive Emma Greenhalgh said from Fremantle to Fitzroy Crossing, WA renters have been smashed by some of the worst rent rises in the country over the past year.

“Greater Perth is now ranked as moderately unaffordable for the first time since 2016 and regional WA is at its least affordable level since 2014,” she said.

“This dire rental crisis is caused by a chronic shortage of available and affordable homes, an issue which requires continued urgent cooperation across the WA housing sector and government.”

In June 2023, there were still some Perth suburbs offering acceptable rents including the CBD and north towards Marangaroo. However, many of these suburbs including Maylands, Mount Lawley and Osborne Park have declined in affordability over the past year.

Some suburbs which were affordable in 2022, such as Maddington, Orange Grove and Kelmscott, have fallen to the acceptable level (20 to 25 per cent of income).

Along the north coast, rents have deteriorated, and are now moderately to severely unaffordable for the average renter. City Beach is Perth’s most unaffordable postcode followed by North Fremantle, Peppermint Grove and Sorrento.

Only one Perth postcode around Winthrop and Bateman offers affordable rents – costing 15 per cent or less of average income.

WA’s regional centres have also worsened with Bunbury now acceptable to moderately unaffordable (25-30 per cent of income). Busselton is moderately unaffordable to unaffordable (30-38 per cent of income).

Joondalup and Kalgoorlie are also both moderately unaffordable. Karratha and Port Hedland are severely unaffordable (38-60 per cent of income).

Savannah Jenkins (21) has been living in her mother’s car with her mother, sister and the family dog for more than a year after they had to move from the rental they had been living in for 18 years.

Between January and November 2022 they applied for more than 130 rentals unsuccessfully. Throughout 2023 the rental vacancy rate in Perth has worsened with Domain clocking the vacancy rate falling to just 0.3 per cent in August.

“We opted to give up the search entirely because of the financial toll of attending home opens with the cost of petrol and then the emotional toll of constant rejection,” she said.

“Our story is one of hundreds and highlights the fragility of the great Australian dream, the modest home on the quarter acre block.”

The family are now on the wait list for social housing. Jenkins said motels, caravan parks and hotels were too expensive to afford long term.

“Having nowhere to store perishable items and no cooking facilities we are restricted in what we can eat. We are forced to shop for groceries every day inevitably making it more expensive.”

Jenkins said the state could immediately open up the disused 500-bed Bullsbrook Centre for National Resilience for those experiencing homelessness.

“Our state needs a macroscopic and microscopic response to weather this housing and cost of living crisis,” she siad.

Greenhalgh said the state government’s announcement last week of a rent relief program would help the most vulnerable, but said WA had some of the weakest rental regulations in the nation, allowing unlimited rent increases every six months and no grounds evictions.

“This means renters are too scared to negotiate a rent increase for fear of eviction and are vulnerable to skyrocketing rents with no relief in sight,” she said.

The $24.4 million program will see more than 4500 rental households struggling to make ends meet have access to a one-off relief payment to help clear their arrears.

Last week the state government also announced it would offer $10,000 to homeowners in WA to remove properties from Airbnb sites to alleviate the heated rental market.

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