Western Australia: Still Australia’s Economic Powerhouse

Western Australia has once again taken the crown as the nation’s strongest economy, leading the CommSec State of the States rankings for the fifth consecutive quarter.

The West continues to outperform every other state and territory, driven by strong household spending, high housing finance activity, and record equipment investment.

Four Key Wins for WA

According to the report, Western Australia ranked first across four major categories:

• Household spending, 14.8 per cent above its long-term average.
• Housing finance, 42.5 per cent higher than the decade norm.
• Equipment investment, 32.9 per cent above average.
• Dwelling starts, 24.8 per cent higher than normal.

These numbers reflect a clear picture of a state in expansion mode. Population growth is running at 2.28 per cent a year, the fastest in the country, as more Australians head west for jobs, lifestyle, and housing affordability. Employment sits 14.6 per cent higher than the decade average, while wages in WA are rising faster than prices, with 3.7 per cent annual growth compared to Perth’s 2.7 per cent inflation rate.

A Magnet for Growth and Migration

Western Australia’s success is built on more than resources. It reflects balanced growth across spending, construction, and investment. The combination of strong population inflows, confident households, and ongoing government support has made the state a standout for a full year.

CommSec Chief Economist Ryan Felsman summed it up:
“Western Australia continues to perform strongly, underpinned by strong population inflows, resilient household spending and ongoing government support.”

With borrowing costs easing and wages growing, Perth’s housing market is showing real momentum. Home lending is more than 40 per cent above its long-term trend, suggesting a deep pool of demand from both homeowners and investors.

Looking Ahead to 2026

CommSec’s momentum indicators, which measure annual growth across eight key metrics, again place Western Australia in first position, ahead of South Australia and the Northern Territory.

Resource-driven states are expected to maintain this edge into 2026 as inflation cools, wages strengthen, and private-sector confidence grows. WA’s new vehicle sales are already 24.7 per cent above the decade average, a small but telling sign of consumer optimism.

Why It Matters

For property investors, Western Australia’s dominance signals where the next wave of opportunity lies. Strong population growth, wage gains, and record-high housing finance all point to a market backed by genuine demand.

The data confirms that WA isn’t just leading the national economy. It’s setting the pace for the next phase of Australia’s growth cycle.

Invest Where the Growth Is

Western Australia remains the country’s most powerful and promising economy.

To explore current investment opportunities in WA’s high-growth regions, contact the Property Club team at enquiries@propertyclub.com.au

Source: CommSec, State of the States – October 2025, Edition 65.