Building a home in Perth in 2026 remains an exciting option for buyers and investors. The opportunity to create a brand-new home tailored to your lifestyle is appealing — but current market conditions mean there are important factors to consider before you begin.
Understanding the realities of building in today’s Western Australian market will help you make a more informed and confident decision.
Rising Building Costs in Perth
One of the biggest challenges when building a home in Perth in 2026 is the continued rise in construction costs.
Since the COVID period, the cost of materials and labour has increased significantly. While price growth has stabilised, overall building costs remain higher than in previous years.
Key cost drivers include:
- Timber and steel prices
- Transport and fuel costs
- Increased labour rates
Because of this, it’s essential to budget carefully and allow a financial buffer for unexpected increases during the build.
Longer Build Times
Build times in Perth have become less predictable.
Delays are now common due to:
- Ongoing supply chain disruptions
- Weather conditions
- Labour shortages
Projects that once took under 12 months can now extend well beyond that timeframe.
If you’re planning on building, it’s important to prepare for potential delays — especially if you’re coordinating rental agreements or temporary housing.
Labour Shortages Impacting Construction
A shortage of skilled tradespeople continues to affect the Western Australian building industry.
With many workers moving into mining and large infrastructure projects, builders are facing challenges securing consistent labour.
This can result in:
- Longer construction timelines
- Increased costs
- Limited builder availability
Choosing a reputable and experienced builder is more important than ever in the current market.
Strong Demand for Housing in Perth
Perth’s property market remains strong in 2026, with demand still outpacing supply in many areas.
While new land developments are helping increase supply, competition remains high for both:
- New builds
- Established homes
This competitive environment means buyers need to act decisively and plan carefully.
Government Incentives and Support
There is positive news for buyers looking to build a home in Perth in 2026.
The Western Australian Government continues to support home ownership through grants and concessions, particularly for first-home buyers.
Recent updates include:
- The property price limit for low-deposit loans through Keystart has increased to $860,000 across the State, reflecting changes in median house prices reported by REIWA
- The Urban Connect Shared Equity Scheme price limit has increased to $800,000
- Limits for other Keystart shared equity products have increased to $720,000
These changes make it easier for more buyers to enter the property market, particularly those with smaller deposits.
Is Building a Home in Perth Still Worth It in 2026?
Building is still a great option — but it requires realistic expectations and careful planning.
Before you commit, consider:
- Allowing extra time for completion
- Budgeting for cost increases
- Working with a trusted builder
- Reviewing contract terms carefully
For some buyers, purchasing an established home may offer a faster and more predictable alternative.
Building vs Buying: Making the Right Choice
There’s no one-size-fits-all answer when deciding between building and buying.
Your decision should depend on:
- Your timeline
- Your budget
- Your long-term goals
Understanding the Perth property market in 2026 is the key to making the right choice for your situation.
Ready to Explore Your Options?
At CY Real Estate, we help buyers, investors, and homeowners navigate the Perth property market with confidence.
Get in touch today to discuss whether building a home in Perth in 2026 is the right move for you.
Sources
https://thewest.com.au
https://www.theaustralian.com.au
https://www.heraldsun.com.au
https://www.wa.gov.au/government/media-statements
https://www.masterbuildinginspectors.com.au/
https://www.mbawa.com
