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The federal and Western Australian governments have announced a joint investment of more than $2 billion to deliver more than 34,000 homes.
The multibillion-dollar deal forms part of the $4.7 billion investment in housing and homelessness in the 2026–27 Western Australia state budget.
As part of the joint investment, $1 billion will be allocated to several government initiatives to deliver more than 30,000 new homes statewide, including 11,000 exclusively for first home buyers (FHB).
The agreement includes more than $500 million to provide water and power infrastructure to support new home development, as well as almost $700 million for land development works in METRONET station precincts, new residential estates, and regional Western Australia.
Additionally, the agreement includes support for first home buyers through the Urban Connect Shared Equity program, while establishing the First Home Buyer Commercial Financing Facility.
The Urban Connect Shared Equity scheme will allow the state government to take a 35 per cent share in a home, reducing the cost by up to $250,000, while the Commercial Financing Facility will provide low-cost financing for multi-unit developments that offer affordable homes for FHBs.
The new homes and residential lots delivered under the deal are expected to become available over time, starting in 2027, easing some of the pressure on the state’s housing market.
Federal Minister for Housing, Homelessness and Cities, Clare O’Neil, said the investment in housing would help deliver affordable housing as the state’s property values continue to rise.
“This is about something simple, making sure young Western Australians can afford a home of their own,” O’Neil said.
“Right now, too many Western Australians feel locked out of the housing market.
“This investment is about changing that, building more homes and backing first home buyers to get in.”
Deputy Premier and Treasurer Rita Saffioti said the initiatives would supercharge housing supply and affordability across the state.
“Every Western Australian deserves a secure place to call home, which is why we’ve made housing our number one priority in this year’s state budget,” Saffioti said.
“We’re proud to have secured this landmark funding agreement with the federal government, which will deliver thousands of new homes for Western Australians and put home ownership within reach for many.”
WA accelerates supply initiatives
The move comes amid strong demand for new housing in the western state, and amid a flurry of building activity in WA. Activity in the state has been supported by strong migration trends, with continued inflows from both overseas and interstate.
According to the latest Housing Scorecard from the Housing Industry Association, Western Australia has retained its position as the strongest home-building market in the country, partly due to a string of government policies that aim to accelerate much-needed supply.
For example, in February 2026, the government announced that it would increase the land tax exemption for build-to-rent developments. Under the legislation, the land tax exemption for eligible build-to-rent projects will rise from 50 per cent to 75 per cent – a move brokers broadly welcomed as a positive step towards boosting housing supply.
Following that, it was announced that WA’s stamp duty concession scheme would be expanded for off-the-plan and under-construction homes.
However, brokers have reported a lack of housing supply in the state, with house prices in Perth growing faster than any other capital city.
[Related: WA tops house-building rankings, but supply pressures persist]
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