WA's Population Tipped to Grow by 500,000. What Does That Mean for Property Investors?

Western Australia’s population is forecast to increase by almost half-a-million people over the next 7 years – a trend that could have significant implications for Perth’s housing market.

The latest projections from the Bankwest Curtin Economics Centre suggest WA’s population will reach 3.5 million people by 2033.

With the state currently home to just over 3 million residents, that equates to an average of around 64,000 additional people each year between now and 2033.

Such rapid growth inevitably raises an important question: will housing supply be able to keep pace with demand?

“Population growth is one of the most powerful drivers of housing demand,” Rent Choice General Manager Clare Christiansen said. 

“When more people move to a state, they all need somewhere to live, and that places immediate pressure on the housing market.”

Housing supply continues to lag demand

The most recent housing supply data suggests the construction pipeline will continue to struggle to keep up.

According to the Australian Bureau of Statistics, 22,123 homes were completed in WA in the year to September 2025.

While that level of building activity is quite strong, it still falls well short of what will likely be required to support the state’s projected population growth.

Based on current forecasts and average household sizes, WA would need to deliver closer to 27,000 new homes each year to comfortably accommodate an additional 64,000 residents annually.

At present, that leaves a shortfall of around 4,000 homes per year.

The outlook for new supply in the near term does not appear much stronger when looking at housing commencements, that is the number of homes currently under construction and a key indicator of future supply.

In the year to September 2025, 22,608 homes commenced construction, suggesting that new housing supply will likely remain below demand for at least the next 12 to 18 months.

“When you compare population growth with the number of homes being built, there is still a clear gap,” Clare said. “That imbalance is a big reason why housing supply remains such a key issue in Perth.”

What does this mean for property investors?

Of course, population projections should always be viewed with some caution.

Economic conditions, migration patterns and government policy can all influence population outcomes, meaning forecasts can shift over time.

At the same time, experienced property investors understand that housing markets are cyclical. Periods where demand exceeds supply are often followed by phases where new construction eventually brings the market back toward balance.

Even so, the current data suggests Perth’s housing shortage is likely to persist in the near to medium term.

“If population growth continues at the pace currently forecast, while housing construction remains constrained, the underlying supply shortage will remain a key factor supporting property values in Perth,” Clare said.

For investors, this imbalance between supply and demand is likely to remain one of the defining features of Perth’s housing market in the years ahead.

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