Rental vacancy rates have remained below one per cent for two years, contributing to the problem, and the number of available rentals under $350 per week has declined by 82 per cent.
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Homeownership has also become more difficult, with construction delays doubling build times to more than 15 months, adding up to $100,000 to the cost of a new home.
Bankwest Curtin Economics Centre director and report co-author Alan Duncan said the state was “witnessing a breakdown in the ability of WA’s housing system to meet the needs of ordinary West Australians”.
“We’re building more homes, but it’s not enough to meet demand,” he said.
“Housing costs continue to rise faster than incomes and what’s being built often isn’t where people want or need to live.
“Despite some signs of a softening housing market, there has been an accumulation of pressure on households from years of high housing costs, low rental vacancies and an inadequate supply of new stock.
“These challenges risk slowing the state’s economic development and continue to affect the most financially vulnerable people in our community.
“While rental vacancy rates have broken two per cent for the first time in more than two years, this won’t ease the rental crisis any time soon.”
Duncan said even with urgent action, rental relief was still 12 to 18 months away, with costs unlikely to stabilise until 2026.
“As affordable homes vanish from inner and middle suburbs, low and moderate-income renters are being pushed to the outer edges of the city where jobs and services are scarcer,” Duncan said.
“This is reshaping the social map of our state and deepening inequality.”
Australian Housing and Urban Research Institute director and report co-author Steven Rowley said there was a clear relationship between poor housing and poor health, with 43 per cent of those in unaffordable housing reporting physical health issues and more than 40 per cent report mental health concerns.
“Homelessness in WA has also risen eight per cent since 2016, with women now making up two-thirds of those accessing help,” he said.
“Cost pressures have pushed more and more families into housing crisis and WA’s social housing waitlist has grown to 20,700 – an increase of more than a third in five years.”
The Bankwest report outlined more than 30 recommendations to improve housing affordability, including urgent action within the next 12 months to expand rental assistance, make WA’s rent relief program permanent, boost homelessness services and strengthen early intervention for those at risk of rental stress or family breakdown.
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Duncan said the system must move “faster and with more coordination”, if the state was to avoid further long-term consequences.
“Without bold action, we risk locking an entire generation out of secure, affordable housing which will have many negative flow-on effects,” he said.
“We are at a critical juncture – many people working full-time can’t afford a place to live and those who can are being pushed to areas that add cost, stress and complexity to their lives.
“We can get housing right with integrated policy solutions, long-term planning and genuine collaboration, but the time to act is now.”
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