Why We Can’t Build Our Way Out of Perth’s Housing Shortage and What It Means for Sellers

12 June

Having worked in the new homes industry firsthand, We’ve seen up close the challenges Perth faces in meeting the skyrocketing demand for housing. The Perth property market is buzzing but unlike in past cycles, the simple solution of “building more homes” is not going to fix the housing shortage anytime soon. Here is why.

A Perfect Storm of Demand and Supply Challenges

Over recent years, Perth has experienced a surge in population growth, mainly driven by increased immigration and interstate migration. More people means more homes are needed fast. Unfortunately, this surge in demand is colliding with serious supply-side challenges.

There is a lack of skilled tradespeople. The construction industry is facing a critical shortage of qualified workers. From carpenters and electricians to plumbers and bricklayers, there simply are not enough hands on deck to keep up with the volume of new builds required. Part of this shortage is due to the booming mining industry, which is drawing many tradespeople away with higher wages and incentives.

Supply chain disruptions have caused materials costs to soar and delivery delays are common, slowing construction timelines even further.

Regulatory and land constraints are also at play. While new developments are underway, planning approvals and zoning restrictions often delay projects by months or years.

Mining Boom Driving Migration and Trade Shortages

Perth’s strong mining sector is a double-edged sword for the housing market. On one hand, it attracts workers and their families from across Australia and overseas, driving up demand for homes. On the other, it pulls skilled tradespeople into mining-related work, reducing availability for residential construction projects.

Listings Are Chronically Low

Currently, Perth has around 4,500 active property listings a number that is well below what experts consider a “fair” market level of roughly 12,000 listings. This significant shortage of available homes intensifies competition among buyers and keeps prices elevated. For more detailed market data, check out REIWA’s Perth Metro Market Report.

Why Building More Homes Won’t Solve the Shortage Quickly

All these factors mean that although building continues, it cannot keep pace with the soaring demand. New homes take months or years to complete, and with fewer tradespeople available, construction timelines stretch out longer than ever before.

This is not just a temporary hiccup it is a structural issue that will shape the Perth real estate market for years. So what does this mean if you are thinking of selling?

The Staging Misconception in a Seller’s Market

Because the market favours sellers right now, many homeowners think staging is not necessary believing buyers will snap up any property regardless of presentation. But in reality, the opposite is true.

With competition fierce among buyers, a well-presented, staged home stands out and can significantly increase the perceived value. Staged properties tend to sell faster and for higher prices because buyers can better imagine living there, making emotional connections that drive decisions.

What This Means for Perth Home Sellers

Higher buyer demand means fewer new homes hitting the market, so existing properties are in greater demand which is a strong signal for sellers to consider listing.

Price stability or growth is supported by limited supply, so staged homes that show well often attract faster sales and better offers.

The importance of presentation is clear. In a competitive market, homes that stand out visually and emotionally can capture buyers’ attention, that is where professional staging makes a real difference.

Adam Delpero