Renting a home is supposed to be a basic right, not a financial nightmare. But for many Australians, especially in Perth, that’s no longer the case. Once considered a more affordable alternative to Sydney or Melbourne, Perth has now earned the unwelcome title of the second most expensive city to rent in Australia. With a worsening housing crisis and stagnant wages, more and more people are finding themselves stuck in what’s being called a “poverty trap.”
Let’s break this down in everyday language, explore how this happened, and more importantly, look at what can be done to survive this harsh rental reality.
Perth’s Rise to Rental Infamy
According to Domain’s latest rental report, Perth has overtaken Brisbane and now trails only Sydney in terms of rental costs. The median weekly rent for a house in Perth has shot up to $650, while units aren’t far behind, averaging $580 per week.
So what’s driving this surge?
- A chronic shortage of rental properties
- Increased demand from people moving to WA
- A post-COVID property boom that hasn’t slowed down
- Investors pulling out due to rising interest rates
All these factors have created a perfect storm, making it extremely hard for everyday Australians to find a place to live.
The “Poverty Trap” Explained
The term poverty trap refers to a cycle where people can’t escape poverty because they’re spending most of their income just to survive. In Perth’s case, renters are spending so much on housing that there’s barely anything left for savings, bills, groceries, or emergencies.
Here’s what this trap looks like:
- High rent eats up over 50% of income.
- With wages not rising fast enough, people can’t save.
- Without savings, you can’t afford to move or buy a house.
- And so, the cycle continues.
A local nurse we spoke to, Tanya, said:
“I’ve been working full-time for six years. Rent just keeps going up, and I’m living paycheck to paycheck. I’ve stopped eating out, cut Netflix, and even skipped dentist appointments. It’s exhausting.”
Australia’s Rental Crisis: A Bigger Picture
While Perth is in the spotlight, this isn’t just a local issue. The national rental crisis continues to squeeze millions of Australians.
- In Sydney, median rent is now $770/week.
- Melbourne and Brisbane have also seen record increases.
- Vacancy rates across the country are below 1%, a sign that supply simply can’t meet demand.
This is putting enormous pressure not just on renters, but also on social services, mental health systems, and the economy at large.
Why It’s So Hard to Get Out
Getting out of this situation isn’t as easy as moving to a cheaper suburb or taking on a second job. Here’s why:
- Moving costs (bond, transport, deposits) are sky-high.
- Childcare fees make it hard for dual-income families to save.
- Many renters are already working 2–3 jobs.
- There’s limited social or affordable housing available.
As Mission Australia explains, more and more people who were previously stable are now seeking emergency housing support.
Step-by-Step Guide to Surviving Perth’s Rental Crunch
If you’re stuck in this rental affordability crisis, here are some practical steps you can take:
1. Track Every Dollar
Use budgeting apps like Pocketbook or MoneyBrilliant to see where your money goes.
2. Share Housing
Consider flat-sharing with friends or trusted coworkers to cut costs by 30–50%.
3. Explore Subsidies
Check your eligibility for Rent Assistance through Centrelink.
4. Negotiate with Your Landlord
Use data from Rent.com.au or Domain to support a request for a rent freeze or reduction.
5. Seek Support Services
Groups like WA Tenants’ Advice Service offer free advice and legal help if you’re being unfairly treated.
6. Consider Regional Moves (If Feasible)
Some towns in WA offer incentives and cheaper housing for people willing to relocate for work.
The Mental Toll of Rent Stress
Living under the constant weight of rising rent affects more than just your wallet. Beyond Blue reports that housing insecurity is one of the biggest causes of anxiety and depression.
Anecdotally, people are reporting:
- Trouble sleeping
- Chronic fatigue
- Relationship strain
- Panic attacks before rent day
If you’re struggling, reach out. Services like Lifeline Australia (13 11 14) are available 24/7.
What the Government Is Doing — and Not Doing
In response to the outcry, both the WA and federal governments have introduced policies such as:
- Increased rent assistance
- Building more social and affordable housing
- Fast-tracking construction approvals
However, critics argue this isn’t enough. Many call for:
- Rent caps
- Vacancy taxes on investment properties
- Stronger tenancy protections
The Greens have pushed for a two-year national rent freeze, but it has yet to gain majority support.
What Needs to Change
Here’s what experts suggest to truly address the rental affordability crisis:
- Build More Housing
Not just luxury apartments, but affordable and social homes. - Limit Rent Hikes
Cap increases to match wage growth or inflation. - Protect Renters
Ban unfair evictions and make leases more secure. - Support First-Time Buyers
Help people move from renting to owning.
Final Thoughts: A City at a Crossroads
Perth is at a turning point. It can either become a city that works only for the wealthy — or it can choose to invest in its people by making housing fair and affordable.
As long as rent remains unaffordable, the poverty trap will continue — hurting not just individuals, but entire communities.
If you or someone you know is struggling, don’t face it alone. Use the resources linked above, seek help, and speak out. Because housing is a human right, not a luxury.
