Perth, the capital city of Western Australia, is known for its vibrant culture, stunning beaches, and thriving economy. Over the years, it has become a popular destination for both locals and international visitors looking for short-term rental accommodation. However, there has been a growing concern about the availability of house rental in Perth. This article aims to answer the question: “Is there still a rental shortage in Perth?”

The Current State of House Rental in Perth

In recent years, Perth has experienced an unprecedented demand for rental properties. This surge can be attributed to several factors such as population growth, increased tourism, and changes in housing preferences. The high demand coupled with low supply has led to a significant increase in rental prices.

According to the Real Estate Institute of Western Australia (REIWA), the vacancy rate for rentals in Perth was at an all-time low of 0.9% at the end of 2020. This means that out of every 100 properties available for rent, only one was vacant. This figure is significantly lower than the equilibrium level of 3%, indicating a severe shortage.

Impact on Short Term Rental Accommodation

The shortage of house rentals in Perth has also affected the availability and affordability of short term rental accommodation. With more people moving to Perth and fewer properties available for rent, short term rentals have become increasingly competitive.

Short term rentals are often preferred by tourists or individuals who are temporarily relocating for work or study purposes. They offer flexibility and convenience that traditional leases cannot provide. However, with the current shortage, finding suitable short term rental accommodation can be challenging.

In addition to limited availability, prices for short-term rentals have also skyrocketed due to high demand and low supply. According to data from AirDNA, an analytics firm specialising in short-term rental data, average daily rates for Airbnb listings in Perth increased by nearly 20% between 2019 and 2020.

The Future Outlook: Will The Shortage Continue?

While it’s clear that there is currently a shortage of house rentals in Perth – both long-term and short-term – what does the future hold? Will this trend continue or will we see a shift towards equilibrium?

There are several factors that could influence this trend moving forward:

1) Government Policies: The government’s response to housing shortages can significantly impact future trends. For instance, policies encouraging property development or offering incentives for landlords could potentially increase supply.

2) Economic Factors: Economic conditions such as employment rates and income levels affect people’s ability to afford housing costs. If economic conditions improve significantly, we might see more people able to afford their own homes rather than renting.

3) Population Growth: If population growth continues at its current rate without corresponding increases in housing supply, it’s likely that we’ll continue seeing shortages.

4) Tourism Trends: With travel restrictions easing globally following COVID-19 vaccinations rollouts; there may be an influx of tourists needing short term rental accommodation which could exacerbate shortages.

In Conclusion

In conclusion, while there is currently a significant shortage of house rentals – both long-term and short-term – in Perth; various factors will influence whether this trend continues into the future. For those seeking short term rental accommodation or looking into house rental opportunities in Perth; it’s crucial to stay informed about market trends and plan accordingly.

It’s important not only for potential renters but also property investors who are considering entering or expanding their portfolio within this market segment.

With careful planning and consideration; you can navigate through these challenges successfully whether you’re looking for your next home or investment opportunity!