Perth suburbs where buying is now cheaper than renting

Plummeting rental vacancies and surging weekly rents have pushed the cost of leasing a home above mortgage repayments in several Perth suburbs, with new figures confirming it is now cheaper to buy than rent in pockets of Balga, Joondalup and Armadale.

This shift comes as ongoing population growth and tight investor lending fuel a city-wide rental squeeze, prompting many Perth tenants to revisit the case for home ownership. Housing affordability watchdogs say more first-home buyers are crunching the numbers as mortgage rates steady but weekly rents continue to climb at previously unseen rates.

Where the numbers favour buyers

On the city’s northern fringe, data tracked by REIWA and Domain shows the average weekly rent on a typical three-bedroom house in Joondalup has hit $680—matching Perth's overall median. But a typical mortgage for the same property, assuming a 20% deposit and a 5.89% variable rate, averages only $645 per week. Similar scenarios are being repeated in Balga, where median house prices hover around $500,000. Here, monthly mortgage payments are now around $585 per week, while advertised rents for family homes have climbed past $600.

In Armadale, the price gap is even more stark. Median rental listings have soared to $580 a week, compared to an estimated mortgage cost of $510 for the suburb’s median house value of $475,000.

These calculations factor in standard home loan terms and exclude additional costs such as rates and repairs for buyers—a consideration that can still shift the ledger for individual households. Yet for an increasing number of renters saving for a deposit, the figures have tipped the balance in favour of ownership at the entry level of the market.

Low vacancy, rising rents reshape the maths

Perth’s vacancy rate has hovered under 1% for eighteen months, according to SQM Research. In concrete terms, the latest June figures reveal just 1,065 rental properties in metropolitan Perth available at any one time—down 31% from two years ago. Industry analysts point to ongoing migration and scarce new development approvals, especially north of the river in places like Clarkson and Wanneroo, as key drivers.

"We have applicants offering $50 or $100 above the advertised rent just to get in the door," said an agent from a major local property management firm. "The volume of renters fighting for properties in suburbs with access to Joondalup train line or major shopping precincts like Lakeside continues to rise."

The numbers have forced several institutional landlords and real estate agencies—such as major player Peard Real Estate—to recommend prospective renters investigate mortgage options before signing new leases. WA State Government’s Keystart program has also seen record applications since January, as more residents explore low-deposit pathways into home ownership.

What next for Perth renters and buyers?

With vacancy rates unlikely to recover quickly, renters face further cost creep in coming months. Real estate advisers recommend prospective first-home buyers review their eligibility for WA Government incentives, which now include a $10,000 First Home Owner Grant and discounted stamp duty on homes under $530,000. Local mortgage brokers suggest buyers get pre-approved before participating in ‘private treaty’ negotiations, which are on the rise as sellers pivot from auction campaigns.

For those still on the sidelines, experts advise actively tracking quarterly suburb reports from REIWA and CoreLogic, as price points in outer zones like Baldivis and Ellenbrook continue to shift. The advice from Perth’s brokerage community is clear: in select northern and southern suburbs, the window for mortgage repayments to undercut soaring rents has opened wider than at any point in the last decade—and may not remain so for long.