Demand for homes to stay high as WA's population surges

Demand for housing will continue to outstrip supply in WA as new data showed the highest rate of annual population growth since 2009, said REIWA CEO Cath Hart. 

WA’s population grew 3.3 per cent to 2.905 million in the year to September 2023, according to Australian Bureau of Statistics (ABS) data released today. 

This equated to 93,591 people or around 37,000 households who moved to WA over the 12-month period. 

"WA’s population remains the fastest-growing in the country, and there are little signs of this easing with the government adjusting its forecasts upwards. This will maintain pressure on WA’s sales and rental markets," Ms Hart said. 

"We can expect to see house prices and rents continue to rise, homes to sell and lease quickly, and the rental vacancy rate to remain low for some time yet."

The population data coincides with February unemployment figures also released yesterday, dropping to 3.6 per cent from 4.3 per cent in January 2024. 

Ms Hart said this underlines the strong economic fundamentals that are part of the attraction for people moving to WA. 

Completions not keeping pace with household growth 

Ms Hart said the strong population growth will maintain pressure on the building industry. 

“While completions did increase in the third quarter of last year, our population keeps growing at near-record rates,” she said. 

“In the year to September 2023 there were nearly 17,000 completions of private and public dwellings, now compare that to the 37,000 new households in WA in the same timeframe. That’s a shortfall of about 20,000 new homes.”

Population growth to remain strong 

Population growth is expected to remain strong with the State Government revising its forecast at the end of last year to 2.4 per cent for 2023-24, up from the 1.7 per cent announced at Budget time. 

“Population growth of 1.7 per cent was last year’s WA Budget forecast for 2024-25 however at this rate, we are likely to exceed even the Government’s revised forecast of 2.4%,” Ms Hart said. 

The strong population growth will maintain demand for housing in both the sales and rental markets.

“WA is appealing destination because of its buoyant labour market and strong wages and also because it is among one the most affordable places for housing in Australia.”