Labour shortages are creating price pressure in the Perth rental property market.

Blowouts in material costs and a lack of workers are delaying new builds and renovations, which is making near-record low vacancy rates even more of an issue for prospective renters.

REIWA president Damian Collin told Gareth Parker rental prices will likely continue to trend upwards until the housing shortage can be addressed.

“The vacancy rate at one per cent is near a 40-year low, so certainly the vacancy rate is challenging and there is a shortage of housing and that is one of the reasons why the rental prices have moved up over the last 12 months.”

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