Units and regional markets offer the best value for buyers
Buying a home is now more affordable than renting in select Australian suburbs, with new data revealing that units and regional areas offer the best value for prospective first-home buyers.
According to property platform Domain, just 6% of suburbs nationally have lower mortgage repayments than rent for houses. Units present a more accessible path to ownership, with 22.8% of suburbs showing cheaper mortgage costs than rental prices.
The Domain report compares mortgage repayments to rental costs across thousands of suburbs, while factoring in anticipated rate reductions that may improve borrowing power. For mortgage brokers, the data underscores emerging opportunities in regions and unit markets, and may help guide clients looking for long-term value amid tight housing conditions.
Regional areas are notably more favourable for buyers. In these locations, 14% of houses and 31.3% of units are more affordable to purchase than lease.
Australia’s largest cities remain the least affordable for homeownership. In every suburb across Sydney, Melbourne and Adelaide, renting a house remains cheaper than servicing a mortgage. Brisbane shows similar trends, with 94.6% of its suburbs favouring renters over buyers.
Perth leads the capital cities for affordability. In particular, 82.9% of unit suburbs in Perth are cheaper to buy in than rent. Regional Western Australia, including the Pilbara, ranked as the most cost-effective area for homeownership overall.
“While the dream of home ownership feels increasingly hard in our biggest cities, this data proves there are still pockets of opportunity, especially for first-home buyers open to units or regional areas,” said Alice Stolz, Domain’s National Property Editor. “Renters are still grappling with significant challenges, from rising living costs to the time needed to save a deposit.
“With further interest rate cuts expected and more support for first-home buyers, would-be buyers should be doing a pulse check of their financial situation and the areas they’re looking to buy. For some, owning a home could already be cheaper than renting – if you know where to look.”
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