Western Australia has emerged as the epicentre of Australia’s housing market momentum, with new data revealing the state’s population is growing faster than anywhere else in the country—and so are its property prices, PropTrack reported.
According to the Australian Bureau of Statistics, Australia’s population grew by 1.8% between September 2023 and September 2024. While Victoria and Queensland both recorded population increases above the national average, Western Australia topped the chart.
This was reflected at the city level, with Perth posting the strongest annual population growth of any capital—up 3.2% from June 2023 to June 2024.
The surge has been driven by a combination of net overseas and interstate migration, with WA (+9,742) ranking second only to Queensland (+29,910) in interstate movement.
“Strong population growth may be driving up home prices in Western Australia, however, it is also important to consider the effect supply can have on price,” said Megan Lieu (pictured), economic analyst at REA Group.
Western Australia is not just leading in migration—it’s also leading in annual home price growth.
According to REA Group, home values rose 11.5% in Perth and 11.9% in Regional WA over the past year, outpacing all other capital cities and regions.
A key driver of this migration and demand is relative affordability.
Even after rapid growth, WA remains more affordable than larger states. In late 2021, Perth’s median house price was $514,000, significantly lower than Sydney ($988,000), Melbourne ($782,000), and Brisbane ($585,000).
“Although the state has experienced immense growth in home prices since 2021 as a result of affordability among other factors such as employment opportunities, homes continue to cost less than most states,” Lieu said.
While demand is surging, new housing supply hasn’t kept pace.
WA has the most severe housing shortfall in the country. According to completions data, there is a 52% gap between population growth and new home construction—almost double the national shortfall of 28%.
The imbalance is placing upward pressure on prices, with both homebuyers and investors competing for limited stock.
“The shortage in the number of homes being built has been the most prominent in WA,” Lieu said. “Relative to population growth, there is currently a 52% shortfall in new homes.”
Unless supply increases substantially, WA’s housing affordability advantage could begin to erode. If demand from population growth and investors continues to rise, prices are expected to climb even higher—posing a growing challenge for first-time buyers and renters alike.
