Houses vs Apartments: What Could 2026 Mean for Perth Rental Prices?

Perth’s property market delivered a notable shift in 2025, with unit values rising faster than houses – a relatively rare occurrence in the WA capital.

According to REIWA data, unit prices increased 20% over the year, compared to 13.3% growth for houses. 

Historically, detached homes have been Perth’s standout performers when it comes to capital growth, so this reversal has caught the attention of both buyers and investors.

The key question now is whether this change in the sales market will influence rental prices in 2026.

Why are units gaining ground?

Affordability has been the major catalyst behind stronger unit price growth.

With Perth’s median house price now sitting above $850,000, many buyers, including investors, are pivoting towards more accessible entry points. 

The median unit price, at around $600,000, represents a price gap of roughly $250,000 compared to houses.

“When detached housing moves beyond the comfort zone for many buyers, demand naturally shifts to more affordable alternatives,” Rent Choice general manager Clare Christiansen said. 

“That’s exactly what we’ve seen play out in 2025.”

But while affordability is clearly influencing purchasing decisions, the rental market operates differently.

Two possible scenarios for rental prices

Investors could reasonably interpret this shift in two ways.

One view is demand-driven: if houses become comparatively more expensive to rent, tenants may lean towards apartments, increasing competition and placing upward pressure on unit rents.

The other view is supply-led: as more investors purchase apartments, the number of units available for lease could increase, potentially softening rental growth in that segment.

“To understand which outcome is more likely, you have to look at the historical rental data rather than just the sales headlines,” Clare said.

The rental price gap is narrow

Unlike the sales market, where houses command around a 30% premium, the rental gap between houses and units is modest.

Currently, Perth’s median weekly rent sits at approximately $710 for houses and $680 for units – a difference of just $30 per week, or around 4%.

While individual properties vary depending on size, quality and location, on a broad market level there isn’t the same affordability divide driving behaviour in rentals as we’re seeing in the sales market.

A decade of parallel growth

Perhaps the most telling insight is that house and unit rents in Perth have largely moved in tandem over the past decade.

In February 2016, median rents were $400 for houses and $380 for units. 

Today, they sit at roughly $710 and $680 respectively. Over that period, the gap has rarely stretched beyond $30–$40 per week, with houses consistently maintaining a modest premium.

“Over the long term, Perth’s house and unit rental markets have tended to rise and fall together,” Clare said. 

“Property type alone doesn’t usually create a major divergence in rental growth — location and supply levels play a much bigger role.”

What to expect in 2026

Rental growth moderated significantly in 2025 compared to the extraordinary conditions seen between 2022 and 2024. 

Last year, rents increased 4.5% for houses and 4.6% for units. This is well below the double-digit annual growth recorded during the peak of the last cycle.

While unit values have recently outpaced houses in the sales market, rental data suggests both segments are likely to continue tracking closely in 2026.

Ongoing interstate and international migration, coupled with relatively low stock levels, should continue to underpin demand. However, outcomes will vary by location.

In areas experiencing a surge of new supply, such as outer suburban house-and-land estates and large apartment developments with a high concentration of investor ownership, landlords are already facing greater competition and may need to remain flexible on price.

Conversely, properties near the CBD, coastline, Swan River and established lifestyle and transport hubs are likely to remain tightly held. Well-located houses and boutique apartment complexes should continue to see resilient demand and steady rental growth.

While 2025 delivered an unusual divergence in sales performance, Perth’s rental market fundamentals suggest houses and apartments will continue to move broadly in step in 2026.

Ultimately, the strongest performance won’t be determined by property type alone, but by location, supply dynamics and asset quality.

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