OPINION ARTICLE BY JAMES LIMNIOS:
Western Australia is competing nationally and internationally for the skilled workers needed to support its next period of economic growth.
But competitive salaries and strong employment opportunities will not be enough if the people we are trying to attract cannot afford to establish a life here.
Housing affordability is no longer simply a social or property-market issue. It is becoming a serious economic competitiveness issue for Western Australia.
The 2026 Demographia International Housing Affordability report ranked Perth 84th among 95 major housing markets surveyed, making it the 12th least affordable market included in the study.
Perth recorded a median multiple of 8.0, meaning the median dwelling price was eight times the gross median household income. The report is not a survey of every city in the world, but its findings provide a clear warning about the direction in which Perth is heading.
This should concern every business that relies upon attracting engineers, tradespeople, health professionals, teachers, hospitality workers and other skilled employees to Western Australia.
Prospective workers do not assess employment opportunities on salary alone. They consider what that salary will allow them to rent or buy, how far they will need to travel to work and whether their family can establish a stable future.
When even households earning reasonable incomes struggle to purchase a suitable home, we have a structural problem.
Governments cannot control every factor affecting housing costs. Interest rates, construction materials and global labour markets all play a role.
However, governments do control planning systems, development charges, taxation settings and approval processes. These are areas in which meaningful reform is possible.
An HIA-commissioned study by the Centre for International Economics estimated that statutory taxes, regulatory costs and infrastructure charges account for approximately $237,000 of the cost of acquiring a new Perth house-and-land package and $149,000 of a new Perth apartment.
That represents approximately 36 per cent of the cost of the house-and-land package and 30 per cent of the cost of the apartment. This is massive and in many instances not needed.
A considered review of what taxes are relevant and necessary needs to be conducted as a priority. Saying that Communities need infrastructure, good design and appropriate development standards.
The problem is the cumulative impact of multiple charges, duplicated assessments, repeated information requests, uncertain decision-making and prolonged approval periods.
In my experience, too many otherwise viable infill projects are becoming caught in approval processes measured in years rather than months. Every additional month means greater interest, consultant and holding costs. Those costs must eventually be absorbed by the project or passed on to purchasers and renters.
Smaller and medium-sized developers are particularly affected. Individually, their projects may appear modest, but collectively they can deliver a significant part of the diverse housing Perth needs.
Federal housing tax reforms must also be assessed according to whether they increase total supply and maintain a functional rental market.
Three immediate reforms would help.
First, compliant infill housing proposals should have a clear 90-day approval pathway.
Second, planning authorities should be required to consolidate requests for additional information rather than repeatedly stopping and restarting assessment periods.
Third, governments should review cumulative taxes, contributions and duplicated design processes to determine whether each cost produces a proportionate public benefit or added red tape and cost.
Approval performance should also be published by jurisdiction so communities can see how long housing applications actually take and where avoidable delays occur.
The housing affordability crisis will not be solved by one policy or one level of government.
But Western Australia cannot promote itself as the nation’s opportunity state while the cost of housing tells skilled workers and young families that they cannot afford to belong here.
Housing must be treated as essential economic infrastructure. Without substantially increasing supply and reducing unnecessary costs and delays, Perth’s affordability problem will ultimately become a constraint on the growth of the entire Western Australian economy.
By James Limnios, Managing Director, Limnios Property Group
14/08/2026 – 13:00
