2025 Rental year in review: What we saw and what’s coming next

As we step into 2026, I wanted to take a moment to reflect on what 2025 really looked like across the Perth rental market, not just in headlines, but on the ground, where our team manages homes and works with landlords and tenants every day.

After several intense years, 2025 felt like a year of adjustment. The market didn’t suddenly become easy, but it did become more settled. Less reactive. A little more predictable.

Here’s what we saw across our core suburbs, how the WA tenancy reforms shaped the year and what we’re keeping a close eye on as we move forward into this New Year.

2025 Recap

From our perspective, managing properties was very much about the market finding its feet again.

Vacancy rates improved
By the end of the year, Perth’s vacancy rate had lifted to around 2.5%. That’s still relatively tight, but it marked a noticeable shift from the extreme conditions of previous years. Some suburbs felt this change more than others, but overall there was a sense of the pressure easing slightly.

More properties came to market
We saw an increase in rental listings, particularly in outer and growth areas. While well-located, well-presented homes continued to attract strong demand, the increase in supply gave tenants a little more choice than they’d had in some time.

Rent growth slowed, but didn’t reverse
Rents didn’t drop across our core areas, but the pace of growth softened considerably. Instead of sharp jumps, increases became more measured and realistic, often guided by condition, location and current market evidence rather than urgency.

Not every suburb moved the same way
As always in Perth, the story was local. Some pockets remained highly competitive, while others began to move toward balance. This suburb-by-suburb dynamic became even more important in decision-making.

The impact of WA Tenancy Reforms

One of the biggest influences on the rental market in 2025 wasn’t just supply and demand, it was the implementation of the WA tenancy reforms.

These changes reshaped how properties are managed and how landlords and tenants interact day to day. From our experience:

• Tenants gained clearer rights and greater security.

• Landlords faced more defined obligations around property condition, documentation and process.

• Property management became far more compliance-driven across the board.

For tenants, this brought greater transparency and confidence.

For landlords, it meant being more intentional, particularly around maintenance, communication and long-term planning.

We also saw some investors take a pause to reassess, while others leaned into improving their properties and management standards to align with the new environment.

What 2025 taught us

Looking back, 2025 felt like a reset year for the rental market.

The urgency eased, quality became a key differentiator and good property management mattered more than ever.

Well-maintained homes stood out quickly. Proactive landlords performed better. Staying compliant, rather than reactive, made all the difference for both owners and tenants.

The reforms, alongside improving vacancy rates, encouraged a more balanced and considered approach. While not without its challenges, it ultimately supported better outcomes.

Looking ahead

As locals who live and work in this market every day, here’s what we expect moving forward:

• Vacancy rates to remain closer to balanced levels.

• Rental growth to continue, but at a steadier pace.

• Tenants to become more selective as choice improves slightly.

• Landlords who prioritise upkeep, presentation and compliance to perform best.

There won’t be one single rental story across Perth, local insight will continue to matter more than ever.

Our take

2025 marked a shift away from crisis mode and toward a more structured, stable rental market. While the reforms required adjustment, the overall direction felt positive.

At Yard, we manage properties where we live. We see the changes firsthand, suburb by suburb, street by street, and we know that no two situations are ever the same.

If you’re a landlord navigating reform changes, or a tenant trying to understand what the year ahead may bring, we are always happy to talk things trough.

No spin. No noise. Just practical advice from people who work in their own backyard.