As it prepares to deliver its first budget since winning a third term, the Cook government is placing a strong emphasis on affordable housing initiatives.
For the second consecutive day, a housing-related plan has been unveiled—this time involving low deposit loans for modular homes to boost home ownership among West Australians. These homes, constructed off-site and assembled on location, are available through the new initiative starting today.
Treasurer Rita Saffioti, Housing Minister John Carey, and local member Daniel Pastorelli promoted the policy during a visit to one of the modular homes.
The government also announced a $210 million shared equity program and a build-to-rent fund, both expected to launch later this year. Under the shared equity scheme, up to 1,000 loans will be available, with the state able to co-purchase up to 35% of a home’s value (capped at $250,000), making home ownership more accessible by lowering upfront costs and mortgage repayments.
Rising Housing Costs Prompt Action
These announcements come as Australia’s average home price surpasses $1 million for the first time, partly driven by rising prices in Western Australia.
Just a day earlier, the government committed $12.3 million in the upcoming budget to attract tradespeople from other states and overseas to help address the construction labour shortage and increase housing supply.
Housing Crisis Deepens Across WA
The renewed focus on housing follows a stark report last week showing a growing crisis. According to the Bankwest Curtin Economics Centre (BCEC), over half of WA households now find housing unaffordable—a 91% jump in just two years. The report cited a housing shortage as the main issue, with more residents being pushed out of central areas in search of affordable options.
The Master Builders Association of WA welcomed the government’s initiatives. CEO Matthew Pollock called the new modular home loan option a “fantastic initiative,” especially for regional communities, and said the programs would support home ownership and stimulate economic and job growth.
Workforce Shortage a Key Barrier
Despite the announcements, concerns remain about the construction industry’s capacity to meet demand. Nicola Brischetto, Executive Director of the Property Council of WA, said that labour shortages remain the industry’s biggest challenge.
“We need more boots on the ground,” she said, while also emphasising the importance of improving productivity with the current workforce.
While the government insists it is doing everything possible to combat the crisis, the number of completed homes last year fell 4,000 short of WA’s National Housing Accord target.
BCEC report co-author Professor Steven Rowley stated that although the government cannot fully control market forces, it can still help by increasing housing supply and investing in social housing.
Budget to Be Delivered Thursday
The 2025–26 WA state budget will be handed down on Thursday. So far, $3 billion in funding has been announced across a range of areas, including:
- $485 million to widen the Kwinana Freeway and upgrade roads in southern Perth
- $669 million to build and upgrade schools across WA over the next four years
- $332 million for new and expanded sports facilities
- $543 million to improve water infrastructure for Kalgoorlie and regional farming areas
