Housing Supply is an ongoing issue for WA and is a particular challenge in regional areas of the State. Investment in headworks and workforce development are critical to unlocking the State’s development potential. In partnership with the State and Australian Government and industry, Local Governments play an important role in identifying regional housing needs, while planning for current and future housing supply.
Overview
The State Government has announced significant commitments to housing in the 2026-27 Budget. Low housing supply amidst high population growth has seen Perth dwelling values increase by 22% over the year to February 2026, driving an increasingly unaffordable environment for Western Australians.
Key initiatives in the Budget include:
- $1 billion for DevelopmentWA and Housing and Works to build 1,426 new social and affordable dwellings in partnership with the Commonwealth through the Housing Australia Future Fund
- $452 million investment for the delivery of an additional 165 social homes and refurbishment of 215 homes, as well as land acquisition for future social housing builds and increased investment in maintenance
- $419 million investment in the Government Regional Officer Housing (GROH) program to deliver 500 homes for regional frontline workers
- $51.4 million to increase capacity of the construction workforce through the Construction Visa Subsidy Program, the Build a Life in WA incentive, and construction-related low and fee-free TAFE courses
- $40 million top-up to the Infrastructure Development Fund
- $50 million for the Regional Housing Support Fund
- $522 million, up from $400 million, for the Housing Enabling Infrastructure Fund to deliver power, water, wastewater and drainage infrastructure to enable housing development, and
- $66.7 million to develop land within METRONET station precincts.
WALGA Comment
Government Regional Officer Housing (GROH)
WALGA welcomes the $419 million investment in the Government Regional Officer Housing (GROH) program, which responds to the urgent need for adequate GROH housing identified in WALGA’s policy platform The West at its Best. This housing supports the attraction and retention of essential Government employees like teachers, police officers, and health workers, and is critical to the sustainability of regional and remote communities in Western Australia.
While the focus of this Government investment is on the regions identified in the State Government’s Seven Cities Vision, supply of GROH housing across the State remains a clear need. Aligned to our ongoing advocacy, WALGA welcomes the announced expansion of the GROH Build to Lease investor scheme, which will support increased supply across the regions.
Social Housing
The significant $1.5 billion investment into new social and affordable homes is a welcome supply-side solution, with Local Governments across the State having expressed ongoing concerns around demand for affordable housing in their communities. The commitment to refurbish 215 dwellings is welcomed to utilise existing stock across the State.
Headworks
A key obstacle to unlocking housing is the cost of headworks. The addition of $40 million to the Infrastructure Development Fund is a positive development, with the fund having been successfully utilised by a range of Local Governments to address regional accommodation shortages. The increase in the Government’s Housing Enabling Infrastructure Fund will aid development potential by supporting water and infrastructure projects delivered by Western Power and Water Corporation. The Regional Housing Support Fund, which provides up to $5 million for Local Governments to support housing, has been topped up by $50 million, bringing it to $75 million. This fund can be utilised for key worker, community housing, and residential subdivisions in regional Western Australia.
Local Governments acknowledge the investment to unlock underutilised State owned land around METRONET stations for high density housing and emphasise it should be delivered in genuine partnership with Local Governments and communities to achieve high quality, place responsive and transit-oriented development outcomes.
Workforce
The Budget provides $51.4 million to increase the capacity of the construction workforce across the State, however this focus overlooks the ongoing shortage of building surveyors and the impact this will have on the housing and construction sectors going forward.
WALGA’s recent survey of Local Government building surveyors confirms that the sector continues to face significant and persistent workforce challenges, driven by an ageing workforce and limited local training opportunities.
This reinforces WALGA’s earlier call to support traineeships and ensure Local Governments have access to the Construction Training Fund, which is vital for sustaining this essential building profession. WALGA will continue to engage with the State on this issue.
