WA Rental Crisis: Vacancy Rate Data Questioned as Housing Market Shows Signs of Easing

The latest rental vacancy data in Western Australia has come under fire, with tenant advocates questioning the accuracy of figures released by a major real estate portal. While recent reports have suggested a slight improvement in Perth's rental market, experts warn that the data fails to fully represent the true state of the market, particularly the increasing number of "room-only" rental listings that may distort vacancy rates and perceptions of housing availability. As the cost of living continues to rise and rental prices surge, the WA rental crisis remains far from resolved.

Key Highlights:

• Vacancy Rate Discrepancies: According to the Real Estate Institute of WA (REIWA), Perth's vacancy rate reached 2% in January, the first time since June 2020. However, other sources, such as CoreLogic (1.5%) and SQM (0.4%), present conflicting data, with some critics questioning the methodology behind REIWA’s statistics.

• Rise in "Room-Only" Listings: Tenant advocate Alice Pennycott highlights a significant uptick in private rental properties being advertised as "room-only" in shared houses. These listings skew the data, inflating the perceived availability of rental properties, but they offer little relief for renters, as many are unregulated and could place vulnerable tenants in precarious situations.

• Rental Affordability Crisis: Even with an apparent increase in vacancy rates, rental affordability continues to be a pressing issue. Data shows the median household in WA now spends 33% of its income on rent, crossing the threshold of what is considered “housing stress.” For many, affordable housing remains out of reach.

• Calls for Reform: Advocates are calling for urgent reform, including rent stabilisation mechanisms, an end to unfair evictions, and the establishment of a WA Affordable Rental Housing scheme. Shelter WA has called for the delivery of 20,000 affordable rental homes over the next decade to help address the housing crisis.

• Political Inaction: With state elections fast approaching, advocates are expressing frustration at the lack of meaningful rental reform commitments from political parties, despite the clear and growing need for change.

Summary:

The rental crisis in Western Australia shows signs of easing, but the latest data from REIWA paints an incomplete picture of the market, according to advocates. The increasing number of “room-only” rental listings, combined with discrepancies between various data sources, raises concerns about the true state of Perth’s rental market. Despite the slight improvement in vacancy rates, affordability remains a significant issue, with many households still struggling to keep up with rising rents.

Advocates like Alice Pennycott argue that while vacancy rates may be ticking upwards, this does not translate into better conditions for renters or a more balanced market. The push for rental reform continues, with a focus on providing more affordable housing and implementing measures to protect vulnerable tenants. As election day approaches, many are urging policymakers to take decisive action to address WA’s ongoing rental crisis.

Source: Domain