The Perth rental market enters 2026 with a noticeably different energy compared to the intense pressure of recent years. As we look at Real Property WA’s Perth Rental Property Predictions for 2026, it’s clear that while demand remains solid, subtle but meaningful shifts are beginning to appear. Vacancy rates are nudging upward, long-awaited housing supply is finally filtering through the pipeline, and tenants are slowly regaining some of the breathing room that’s been missing since the pandemic-era squeeze began.
These early changes are reshaping the mood of the market, offering a glimpse of what the year ahead may hold. Rather than dramatic swings, 2026 is shaping up to be a year defined by steady recalibration — a period where rental trends, construction activity, and tenant movement start to align in new and interesting ways across Perth.
Market Conditions Heading Into 2026
Vacancy Rates: Rising, but still tight
After sitting at crisis-level lows for years, Perth’s vacancy rate has finally begun to show meaningful movement. According to REIWA’s data, the rate dipped below 2% in December 2024 before climbing above 2.5% by December 2025, marking the most consistent upward trend we’ve seen in some time. While the market is still operating below what’s considered balanced, this shift supports our Perth Rental Property Predictions for 2026, suggesting the tightest phase of the rental shortage may be behind us. More choice for tenants doesn’t signal a soft market, but it does point to a gradual easing of the frantic competition that has defined recent years.
Source: https://reiwa.com.au/the-wa-market/rental-vacancy-rates/
Days on Market: Slowing from record lows
Properties are still leasing swiftly, but not at the breakneck pace of 2023/2024Well-presented homes in desirable areas are still drawing solid enquiry, whereas properties with fewer updates or priced toward the upper end of the market are experiencing slightly longer leasing times
Rental Prices: Growth steadying
After several years of steep increases, rent growth is expected to slow to more sustainable levels in 2026. This doesn’t mean rents will fall, but the pace of change is likely to be far more manageable for tenants and more predictable for landlords.
Supply Factors Shaping 2026
New builds finally hitting the market
After years of delays, a wave of new infill projects, townhouses, and house‑and‑land builds is finally being completed in 2026. As these homes are handed over, many tenants waiting on construction are moving into their newly built properties, freeing up additional rental stock and easing pressure in key suburban areas.
Investor activity returning
With interest rates stabilising, and the Reserve Bank of Australia signalling the potential for cuts ahead, more investors are beginning to re‑enter the market. This renewed activity should gradually lift rental supply, though not enough to shift the balance dramatically overnight.
Source: https://www.rba.gov.au/statistics/cash-rate/
Tenant Behaviour Trends for 2026
As Perth’s rental market starts to loosen in 2026, renters are becoming more selective and considerate in their choices. We’re seeing clear shifts in how tenants search, apply, and prioritise features in a property, trends that are already shaping leasing activity across the city.
Our Top 5 Perth Rental Market Predictions for 2026
1. Vacancy rates rise toward 3%
Still tight, but the closest to balance we’ve seen in years.
2. Rent growth slows to low single digits
A welcome change for tenants and a more predictable environment for landlords.
3. More investors return to the market
Stabilising interest rates and improved confidence will draw investors back, increasing rental stock.
4. Tenants gain more choice
Inspection crowds shrink, and applications become more considered rather than
What This Means for Landlords in 2026
- Well‑presented maintained homes will continue to attract the strongest demand.
- Pricing strategy becomes more important as the market normalises.
- Professional property management remains essential to navigate shifting tenant expectations and compliance requirements.
This is a year to focus on quality, presentation, and long‑term tenant retention, something Real Property WA works closely with landlords to achieve.
