FACTBase Bulletin 67 - Cost of Living in Greater Perth

This Bulletin is the sixth research input into the Hashtag Perth project. It aims to establish whether the cost of living in Greater Perth in 2019 is a comparative weakness or strength of the region as compared to other Australian cities.

Key Findings

• Greater Perth has become a comparatively more affordable place since 2014.
• The Economist Intelligence Unit (EIU) 2019 Cost of Living Survey ranked Greater Perth as the most affordable major capital in Australia (after Sydney, Melbourne, Brisbane and Adelaide).
• ABS Consumer Price Index (CPI) growth rates were highest in Greater Perth in the period from 2004 to 2009 and eased from 2014 to 2019.
• Rates of price growth in essential goods and service categories such as housing and food and non-alcoholic beverages fell from 2016 to 2019.
• Mean gross income and mean equivalised disposable income growth over the past decade was minimal and declined from 2016 to 2018. Nevertheless, Greater Perth still recorded the highest rate of income growth amongst capital cities in the 15 years from 2003-2004 to 2017-2018.
• Perceptions of high living costs in Greater Perth are most likely associated with rapid price growth prior to 2014 and rates of income growth that have not maintained pace with CPI increases from 2014 to 2019.