Airbnbs are booming in a dire WA rental market. Are caps the answer?

Hart said supply was the key issue facing Perth’s rental market, where house rent prices have soared to a record $600 a month on the back of a historically low vacancy rate of 0.3 per cent.

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Modelling suggests between 18,000 – 20,000 additional rental properties are required to see WA return to a balanced market, and the majority of these are needed in Perth.

The short-stay market is seen to be a lucrative alternative to the long-term rental market.

In the March 2023 quarter in Perth,…