What's happening in housing right now, and what it means for Perth Investors…
Policy is shifting toward new supply
There’s growing discussion around changes to negative gearing, with the focus now shifting toward encouraging new housing supply rather than removing investor incentives altogether. Early signals suggest tax benefits may stay in place for investors purchasing new builds, while incentives for existing properties could be reduced. The direction seems clear, push more investment into building new homes to help ease supply pressure.
Inflation is still running hot
The latest data from the Australian Bureau of Statistics (ABS) shows inflation has climbed to 4.6% to March 2026, sitting above the Reserve Bank of Australia’s target range of 2–3%. Rising fuel, food, and housing costs, along with global energy pressures, are continuing to push everyday expenses higher. For property owners, this is also flowing through to construction and maintenance costs, with the potential for further rate movements if inflation stays elevated.
Source: https://www.abs.gov.au/media-centre/media-releases/cpi-rose-46-year-march-2026
Fewer homes are coming online
Recent analysis from the National Housing Supply and Affordability Council, along with reporting by Michael Bleby, suggests up to 33,000 homes could fall out of Australia’s construction pipeline due to rising costs and ongoing supply issues. The national target of 1.2 million homes is already expected to fall short, and broader economic conditions, like borrowing capacity and confidence, could slow things down even further.
Sources:
https://nhsac.gov.au/reports-and-submissions/state-housing-system-2025
https://www.afr.com/property/residential/iran-conflict-to-cut-33-000-homes-from-1-2-million-national-target-20260429-p5zs2q
What this means for Perth investors
For Perth, this all points to one thing, a tight supply environment that isn’t easing anytime soon. With policy leaning toward new builds, costs rising, and fewer homes being delivered, well-managed rental properties are likely to remain in strong demand. The gap between average and high-performing assets will continue to widen.
About The Author
Lauren Thumwood – Director/Licensee, L Residential
Lauren Thumwood is a Property Management specialist with over 13 Years industry experience operating at Senior leadership levels within the Perth Residential Rental Market. Having led and optimised large rent rolls, Lauren is known for her structured, performance-driven approach focusing on efficiency, compliance, and measurable portfolio outcomes.
As the Director of L Residential, Lauren brings a unique perspective as both a property professional and investor, combining strategic oversight with hands-on experience in leasing, tenancy management, and asset performance. Her approach is built on transparency, accountability, and proactive management, ensuring clients are not only informed, but positioned to make confident, data-backed decisions.
Lauren founded L Residential to redefine the investor experience, delivering one point of contact, consistent communication, detailed reporting, and a clear strategy focused on performance, risk management, and long-term asset protection.
Disclaimer:
This article is based on publicly available data and reporting from third-party sources including the Australian Bureau of Statistics, the National Housing Supply and Affordability Council, and the Australian Financial Review. It’s intended as general commentary only and should not be taken as financial or investment advice. All interpretations are those of the author.