“Housing affordability and supply pressures are impacting the nation as a whole, but Western Australia faces distinct challenges that call for tailored, local solutions within broader national policies.”
With Australia’s housing crisis taking centre stage in the federal election campaign, the Real Estate Institute of Western Australia (REIWA) welcomes the national attention but is calling on both major parties to ensure Western Australia is not overlooked when it comes to delivering meaningful, on-the-ground outcomes.
While housing affordability and supply issues are being felt across the country, Western Australia faces its own distinct challenges, which demand tailored, localised strategies supported by broader national frameworks.
WA is currently grappling with one of the most constrained rental markets in its history. Although it is positive to see housing emerge as a priority at the federal level, it is vital that policy responses are designed to support Western Australian buyers, renters, and investors—not just those on the east coast.
For much of the past year, WA’s rental vacancy rate has sat below 1 percent, placing considerable strain on both the affordability and availability of rental homes. National housing targets, such as the aim to construct 1.2 million new dwellings, are commendable, but current progress suggests these goals are unlikely to be met. Achieving genuine outcomes will require significant reform, including streamlined planning processes, increased land availability, and investment in the construction workforce—especially within WA.
The long-term solution lies in increasing housing supply, which demands more than campaign pledges. Federal funding and policy tools must be applied effectively to fast-track land releases, speed up development approvals, and bolster skilled trades critical to the housing sector.
REIWA supports several of the proposals put forward by both major parties, particularly initiatives aimed at assisting first home buyers. However, it is essential that demand-side measures are complemented by serious efforts to address supply constraints.
Expanding schemes like the Home Guarantee Scheme may help more people enter the market sooner, but without corresponding increases in supply, there is a significant risk of further driving up property prices—particularly in Perth’s already tight market.
Encouragingly, both Labor and the Coalition have committed to maintaining current negative gearing and capital gains tax settings—policies REIWA views as crucial to supporting investor confidence and sustaining rental stock. Conversely, the Greens’ ongoing campaign to abolish negative gearing remains disconnected from the realities of WA’s vulnerable rental market.
A recent survey conducted through reiwa.com highlighted these concerns, with 83 percent of investors indicating that changes to property tax would influence their decision to sell their investment properties. Now is not the time to destabilise the private rental sector. Clear, practical, and stable policy is what’s needed.
While the renewed political focus on housing is encouraging, outcomes matter most. Whichever party forms the government following this election must ensure that housing policy delivers for all Australians—including those in Western Australia.
