The Urban Development Institute of Australia (UDIA WA) represents hundreds of organisations across the urban development industry who are committed to creating diverse, well-connected and sustainable communities across the state.
Our purpose is to support great places and housing choice for better lives for all West Australians, with a vision for more diverse living options in thriving, connected communities across the state. We work toward our purpose and vision through our initiatives and activities across our three strategic pillars – advocate, educate and connect.
Amid the current housing crisis, UDIA WA’s advocacy work has been more important than ever as we collaborate with relevant stakeholders, including all levels of government, to unlock housing supply and get more homes on the ground, faster.
Given the private industry delivers over 95% of new homes in WA, it is critical that industry is supported in their crucial role to deliver homes to the West Australian community.
The housing crisis has highlighted the increasing difficulty that many West Australians are experiencing in finding a home that meet their needs, whether they are renting or buying.
State of the housing market in WA
The most recent data from UDIA WA’s Urban Development Index (UDI) for the September 2025 quarter revealed an extraordinary 3,683 new lot sales, which is a 51.5% jump in sales on the previous quarter and 58% higher than the same time last year.
On the flipside, just 393 lots were recorded as on the market at 30 September 2025, which is 55% down on the previous quarter.
Key drivers in WA that continue to feed demand include strong population growth, continued economic growth and government financial support for buyers including the Federal Government’s Help to Buy Deposit Scheme.
As sales reach record highs, the average price of land is following an upward trajectory to sit at $377,535 which is 8.8% higher than a year ago and a staggering 50% higher than two years ago, when the average lot price was $250,965.
In the established market, the median price of homes increased from $585,000 to $810,000 in just the last two years. These sharp increases are clear symptoms of constrained supply amid high demand.
We have also seen the rental market remain extremely tight, with a current vacancy rate of just 1.3% here in Perth, and the median weekly house rent up to $736.
How is UDIA WA working on behalf of industry to address the housing crisis?
Given the above market context that has been escalating over several years, in the lead up to the 2025 State Election, UDIA WA used the opportunity to launch a campaign that reinforced how government and industry must work together to boost housing delivery in both Perth and the regions.
Through our comprehensive research and analysis of the property market, including our Urban Development Index; National Housing Pipeline® reporting; Infrastructure Growth Areas Requirements Report and more, we were able to provide evidence based, real world solutions to the challenges we are currently facing throughout our campaign and beyond.
We are dealing with stretched infrastructure networks, a multi-layered approvals process that still presents delays and uncertainty, high construction and materials costs and skilled worker shortages that all challenge industry’s ability to deliver the homes we need.
Therefore, UDIA WA’s priorities in both our election campaign and subsequent pre budget submission included highlighting the need for strategic planning, funding and delivery of enabling infrastructure, advocating for more streamlined approvals processes, making recommendations for relevant workforce attraction and retention; and fostering community understanding around the need for greater housing choice in all our suburbs.
If we want to give people real housing choice, whether that is a home in the suburbs, an apartment close to work, or a townhouse in a thriving activity centre, then we need a clear, coordinated plan to deliver.
To that end, our direct advocacy has led to several initiatives aimed at enabling housing delivery and increasing access to homes, whether in the rental market or through home ownership right across the housing continuum.
Key milestones to getting more homes on the ground, faster
Recent initiatives the State Government has launched, directly related to UDIA WA’s advocacy, have included the increased and targeted funding for enabling infrastructure under the Housing Enabling Infrastructure Fund (HEIF).
The transition of Keystart to a Government Trading Enterprise to facilitate housing supply along with new products including the Shared Equity Scheme for up to 1,000 new apartments and townhomes either off the plan or under construction, along with new loan products for graduates and apprentices are all supported. Along with the new Build to Rent (BTR) Kickstart Fund that was introduced in response to direct advocacy from UDIA WA on the need to enhance taxation settings and viability of BTR projects.
The Infrastructure Development Fund (IDF) has also been a welcome initiative, albeit UDIA WA continues to advocate for its expansion to include a broader range of statutory fees and charges.
We also support the $50 million Housing Innovation Program, introduced following UDIA WA’s call for funding to advance research and development in construction practices, technology and digitalisation to better respond to skills and labour challenges faced in WA.
Speaking of skills and labour challenges, the free TAFE course targeted at residential construction trades along with the Build a Life in WA Incentives are also supported, and UDIA WA continues to advocate for the development and implementation of a Construction Workforce Attraction and Retention Strategy for Perth and the Regions.
For buyers, support has grown with the expansion of the Federal Government’s First Home Guarantee Scheme and the State’s higher stamp duty thresholds that better reflect today’s property prices, helping more first home buyers into the market.
UDIA WA supporting industry
As we continue to navigate the challenges and opportunities that the current market context provides, UDIA WA will remain at the forefront of discussion and solutions-based advocacy on behalf of the property industry in WA.
The next step will be our next pre state budget submission, set to be lodged with the Treasurer before Christmas to ensure there is plenty of time to consider our key asks prior to the 2026-27 Budget Papers in May 2026.
To find out more about how UDIA WA are representing our members – the community creators across WA – visit our website: www.udiawa.com.au
By Tanya Steinbeck
