RBA and State Budget Announcements

We saw two major developments over the past week highlighting how important housing supply and affordability have become across WA.

The RBA increased the cash rate to 4.35%, while the WA State Budget announced a record $4.7 billion investment into housing measures across the State.

Some of the key housing measures announced include:

• More than 500 new regional worker homes

• Additional investment into affordable and social housing

• Increased support for first home buyers

• Funding aimed at boosting housing supply and regional growth

While higher interest rates may place more pressure on borrowing capacity, demand across WA remains strong, particularly in affordable and regional markets where supply continues to lag behind population growth.

RBA announcement:

https://www.rba.gov.au/media-releases/2026/mr-26-12.html?utm

WA State Budget housing announcement:

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