WA’s Population Growth: What It Means for the Property Market

Western Australia is experiencing an unprecedented population surge, and the latest data from the Australian Bureau of Statistics (ABS) confirms it. With WA leading the nation in population growth, demand for housing is intensifying—creating both challenges and opportunities for buyers, sellers, and investors.

Western Australia: The Fastest-Growing State in the Nation

Australia’s population reached 27,309,396 at the end of September 2024, growing by 484,000 people in just one year—which is a staggering 10,000 (or close to) new residents each week.

The majority of this increase (379,800 people) has come from overseas migration, a trend that is also reshaping WA’s population landscape.

Here in WA, we’ve recorded the fastest growth rate in the country at 2.5%, bringing the state’s population to 2,981,800—an increase of 72,600 people in just 12 months. This growth is being driven by:

• Net overseas migration: 50,760 people
• Net interstate migration: 8,974 people
• Natural population growth: 12,878 people

To put this into perspective, WA’s net migration before COVID between 2015 and 2020 was only 120,000 for the full 5 years or only 12,000 a year.

In real terms that’s 1,148 new residents arriving each week in the last 12 months, creating demand for 462 new homes every week—or over 24,000 homes a year.

Housing Supply at Critical Levels

With WA’s population surging, the housing market is struggling to keep pace. For the week ending 6^th April 2025, there were only:

• 4,367 properties for sale (excluding land)
• 2,238 rental properties available
• A total of just 6,605 homes available

At the current rate of demand, this equates to just over 14 weeks of supply—a number that explains why competition for homes is fiercer than ever. And that’s without factoring in ongoing demographic shifts.

Many property analysts are now beginning to factor in the potential of reduced interest rates versus higher rental yields and believe that investors will see WA as the place to invest in real estate. With forecasts that see property prices continuing to rise and the cost of financing reducing as yields increase, along with the added uncertainly and volatility of the share market – WA property does present as a safe and lucrative investment.

What Lies Ahead?

Looking forward, the Australian Bureau of Statistics (ABS) has Australia’s population is forecast to grow to between 29.1 and 30.7 million by 2030—meaning we need to accommodate an additional 2.3 million residents, equivalent to housing all of Perth in just five years.

 

 

Here in WA, the state government’s Western Australia Tomorrow 12 report predicts our population will rise to 3,567,000 by 2036, growing at an annual rate of 1.8% (or 52,000 people per year).

With limited housing stock and supply issues, it’s clear that the property market is set to stay competitive and a reassuringly ‘safe place’ for home owners to see their home values continue to rise and investors enjoying solid returns in WA property.

Justin Davies