24/10/2026
RENT CAPS?! WA has a rental shortage, and now someone wants rent caps!?
A new report from "Make Renting Fair" is calling for rent increases to be capped at 2% or inflation, whichever is lower.
Why 2%? Why not 1%? Where did that number come from, and how exactly will it create more rental properties?
It's obvious that "Make Renting Fair" created a report to support their conclusion, and now it's being treated as "science".
We've seen what happens when rent controls are applied.
In San Francisco, a major study found that affected landlords reduced rental housing supply by 15%, selling properties to owner-occupiers or redeveloping them.
In 1970s New York, collapsing property values and poor rental returns contributed to widespread building abandonment. Some landlords even burned their buildings to collect insurance payouts, although insurance incentives and urban decline were also major factors.
The economics isn't complicated.
If the return on providing rental housing falls, investors will take their money elsewhere. Existing tenants might enjoy cheaper rents in the short run, but the next family looking for a home will have fewer choices of poorer quality.
In 2024, an economist reviewed 112 published empirical studies on rent control.
And the consequences were entirely predictable:
- Shortages
- Rationing and queues
- Black markets
- Declining quality
- Reduced investment and supply
Don't fall for this propaganda. If prices were arbitrary everything would be free.
A new report out today reveals rent stabilisation is long overdue.
WA is experiencing "the worst rental crisis in living history, and is now one of the least affordable places to live on the planet", according to 'The Cap Still Fits' report by Make Renting Fair.
For Peel resident Michelle, a looming rent increase of $100 per week will outpace her wage and rent will cost her 69 per cent of her income.
She told Nadia Mitsopoulos on 102.5 ABC Perth that the increase was hidden into her lease renewal and will create a crisis for her single-parent household budget.
Michelle said she feels like she doesn't have any option but to agree to what the landlord wants.
"I can fight, but then that leaves me in the predicament of possibly not having my lease renewed and with the rental shortage, I feel like I don't have any options," Michelle said.
Shelter WA CEO Kath Snell is calling for a rent cap to be introduced.
She describes rent increases over the last few years as ludicrous and said people are being pushed to their absolute limits.
"It's gone up 132 per cent in five years and in that same time period, salaries have gone up 18 per cent and CPI has gone up 23 cent," Ms Snell said.