Renters Vs Buyers: Regional Markets Offer Little Relief Against Perth's Soaring Housing Costs

Perth’s tenants and first-home buyers are both battling eye-watering costs, but new figures show that renters hoping to escape the capital’s crunch by heading to regional Western Australia may find little relief.

Rental affordability has hit crisis levels across both Perth and popular regional centres like Bunbury and Geraldton, with CoreLogic’s mid-year Property Pulse revealing that average advertised house rents in the Peel region (Mandurah, Rockingham) have surged to $570 per week—just $10 below Perth’s current median of $580. Vacancy rates remain below 1% both in city suburbs like Mount Lawley and in regional shires, underscoring that the squeeze is widespread.

Regional Edges Shrink Amid Market Pressure

For much of WA’s last mining boom, renters could often find better deals in towns like Albany or Kalgoorlie compared to the hot spots around Perth’s CBD or beachside precincts. That gap has narrowed dramatically. According to the Real Estate Institute of Western Australia (REIWA), Bunbury’s median weekly rent hit $525 in June 2026—up nearly 13% year-on-year and only marginally cheaper than suburbs like Joondalup or Cannington. Local agent Megan Blight of Elders Real Estate Bunbury cited increased FIFO demand from lithium mines as a major driver.

Public housing waitlists tell a similar story. In the Wheatbelt, the Department of Communities reported more than 700 families queued for a government-subsidised rental as of April—comparable to longer-established suburbs in the northern corridor like Wanneroo and Stirling. The recently announced Pilbara Rent Relief pilot program filled all its allocations within two days, with applications flooding in from Karratha and Port Hedland.

Buying Is Not the Easy Escape

Some would-be renters are turning to purchase, but surging sale prices and tightened lending conditions offer little comfort. Perth’s median house price touched $682,000 in late June, a 6.7% jump in just five months. In Geraldton, the sales median now sits at $430,000—still high by regional standards, especially given the 8% price growth since January. In Broome, advertised homes routinely top $700,000, putting them out of reach for locals earning the WA average annual wage of $96,000.

Borrowers face stricter stress tests as WA banks comply with the renewed APRA guidelines, meaning that fewer buyers are approved even with sizeable deposits. Regional mortgage brokers report more clients being turned away compared to the same period last year, especially in high-demand coastal locations. In response, local councils such as Katanning and Northam have revived shared equity programs, but the scale can’t keep up with current volumes.

Experts recommend acting quickly if considering relocation for affordability, but warn that the days of a regional rental bargain may be numbered. REIWA’s July forecast predicts rent pressure to persist across both city and country markets through the remainder of the year—a rare moment of parity, but not in the way many WA households had hoped.