Where Are The Most Affordable Places In Australia?
Takes only 9 minutes
16 Dec, 2021
Updated: 12 Dec, 2024
Table of Contents
- How Much Has Housing Affordability Declined?
- Where Are The Most Affordable Suburbs In Sydney?
- Where Are The Most Affordable Suburbs In Regional NSW?
- Where Are The Most Affordable Suburbs in Melbourne?
- Where Are The Most Affordable Places In Brisbane?
- Where Are The Most Affordable Places In Adelaide?
- Where Are The Most Affordable Places In Perth?
- Where Are The Most Affordable Places In Hobart?
- Where Are the Most Affordable Places In Darwin?
- Where Are The Most Affordable Places In Canberra?
- How To Buy Your Dream Home Sooner
The ANZ CoreLogic Affordability Report analysed data from the end of the March 2020 and June 2021 quarters for more than 130 areas in Australia. The report shows a decline in housing affordability, creating a bigger challenge for first-home hopefuls. The report analysed data on four different metrics.
1. Dwelling value-to-household income ratio
2. Years required to save a 20% deposit
3. Portion of income required to service a new mortgage
4. Portion of income required to service rent
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LEARN MOREHow Much Has Housing Affordability Declined?
Between the end of March 2020 and June 2021, housing values increased by 12.6% while median household income declined by 0.2%. Since housing values rose and household incomes declined, affordability deteriorated at the national level.
1. Dwelling value-to-household income ratio
The national ratio of dwelling value to income reached a record high of 7.7 in the June 2021 quarter. The ratio is above the decade average of 6.3 and up from 6.4 in the September 2020 quarter.
This ratio increased more sharply across houses than units. Between March 2020 and June 2021, the ratio for houses rose from 6.7 to 8.1, while it rose from 6.2 to 6.8 for units. The pandemic brought forward a strong demand for lower-density housing.
2. Years to save a deposit
Based on households saving 15% of their gross annual income, a typical household would have needed a record high 10.2 years to save a 20% deposit at the end of the June quarter of 2021. It would take 10.8 years for houses and 9.0 for units.
3. Portion of household income required to service a new mortgage
At the end of the June 2021 quarter, the portion of income required to service a new mortgage on a median dwelling value was 37.2%. This is above the decade average of 34.7%. For units, it was 32.8%, and for houses it was 39.3%.
4. Portion of income required to pay rent
Through the June 2021 quarter, median dwelling rents remained lower than the portion of income required to service a mortgage, at 29.4%, despite being the highest percentage on record. This was higher than the decade average of 28.1%. In the September 2020 quarter, it was 26.8%.
Housing is generally considered unaffordable when the mortgage serviceability or rental costs are 30% or more of gross household income.
Where Are The Most Affordable Suburbs In Sydney?
Sydney’s Pittwater was the least affordable suburb in Australia, CoreLogic’s data showed. The portion of income to service a new mortgage was 103.7% and the portion of income to pay rent was 51.4%. It would take 28.5 years to save a 20% deposit for the average home in the suburb and the dwelling value was 21.4 times higher than gross annual income.
Here is a list of the five most affordable areas in Sydney.
| Suburb | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Parramatta | 6.9 | 9.2 | 33.4% | 23.9% |
| Penrith | 8.0 | 10.6 | 38.6% | 26.3% |
| Camden | 8.1 | 10.9 | 39.5% | 27.0% |
| Wollondilly | 8.2 | 11.0 | 40.0% | 27.5% |
| Blacktown – North | 8.3 | 11.1 | 40.3% | 26.1% |
Where Are The Most Affordable Suburbs In Regional NSW?
There were more affordable areas in regional NSW.
| Region | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Bourke – Cobar – Coonamble | 2.2 | 2.9 | 10.6% | 24.5% |
| Broken Hill and Far West | 2.2 | 3.0 | 10.8% | 26.7% |
| Moree - Narrabri | 3.2 | 4.3 | 15.5% | 24.9% |
| Lower Murray | 3.5 | 4.7 | 16.9% | 24.1% |
| Lachlan Valley | 4.1 | 5.5 | 20.0% | 27.2% |
Where Are The Most Affordable Suburbs in Melbourne?
Manningham-West came out on top as the least affordable suburb in Melbourne. It would take a borrower 20.8 years to save a 20% deposit and the average dwelling value was 15.6 times higher than the average gross annual income. The portion of income required to service a new mortgage was 75.5% and the portion of income to pay rent was 33.6%.
Here is a list of the five most affordable suburbs in Melbourne.
| Suburb | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Melton–Bacchus Marsh | 6.6 | 8.7 | 31.8% | 23.8% |
| Stonnington-West | 6.6 | 8.8 | 32.0% | 23.0% |
| Wyndham | 6.8 | 9.1 | 33.0% | 22.7% |
| Port Phillip | 6.9 | 9.2 | 33.5% | 23.9% |
| Yarra | 7.3 | 9.8 | 35.6% | 24.6% |
Where Are The Most Affordable Places In Regional Victoria?
There were more affordable places in regional Victoria as well.
| Region | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Murray River–Swan Hill | 4.2 | 5.7 | 20.6% | 26.0% |
| Grampians | 4.3 | 5.7 | 20.7% | 26.7% |
| Loddon-Elmore | 4.3 | 5.7 | 20.7% | 31.5% |
| Latrobe Valley | 4.9 | 6.6 | 23.8% | 27.9% |
| Wellington | 5.1 | 6.7 | 24.5% | 28.8% |
Where Are The Most Affordable Places In Brisbane?
Bribie-Beachmere was the least affordable area in Brisbane. It would take 13.9 years to save a 20% deposit and the dwelling value was 10.4 times higher than the average gross annual income. The portion of income to service a new home loan was 50.7% and the portion of income to pay rent was 45.2%.
Here is a list of the five most affordable places in Brisbane.
| Places | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Springfield–Redbank | 4.7 | 6.2 | 22.6% | 23.9% |
| Ipswich Inner | 4.8 | 6.4 | 23.1% | 24.9% |
| Loganlea–Carbrook | 5.5 | 7.4 | 26.7% | 27.4% |
| Springwood–Kingston | 5.3 | 7.1 | 25.8% | 28.6% |
| Browns Plains | 5.3 | 7.1 | 25.7% | 27.2% |
Where Are The Most Affordable Places in Regional Queensland?
There were more affordable options in regional Queensland as well.
| Place | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Outback South | 2.1 | 2.8 | 10.0% | 22.3% |
| Biloela | 2.1M | 2.8 | 10.2% | 18.6% |
| Outback North | 2.6 | 3.5 | 12.7% | 23.9% |
| Bowen Basin–North | 3.0 | 4.1 | 14.8% | 23.7% |
| Charters Towers–Ayr–Ingham | 3.2 | 4.3 | 15.5% | 24.9% |
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Where Are The Most Affordable Places In Adelaide?
Burnside is the least affordable area in Adelaide. It would take a home buyer 15.6 years to save a 20% deposit and the dwelling value was 11.7 times higher than the average annual gross income. The portion of income required to service a new mortgage was 56.7% and to pay rent, it was 32.1%.
Here is a list of the five most affordable places in Adelaide.
| Place | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Playford | 4.6 | 6.1 | 22.2% | 27.6% |
| Gawler–Two Wells | 5.6 | 7.5 | 27.2% | 28.0% |
| Salisbury | 5.7 | 7.7 | 27.9% | 30.5% |
| Tea Tree Gully | 6.4 | 8.6 | 31.2% | 29.2% |
| Adelaide Hills | 6.8 | 9.0 | 32.9% | 29.8% |
Where Are The Most Affordable Places In Regional South Australia?
There were more affordable areas in regional South Australia.
| Area | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Outback–North and East | 2.3 | 3.0 | 11.0% | 23.0% |
| Eyre Peninsula and Southwest | 3.6 | 4.8 | 17.5% | 24.5% |
| Limestone Coast | 4.1 | 5.4 | 19.7% | 26.0% |
Where Are The Most Affordable Places In Perth?
Cottesloe-Claremont in Perth was the least affordable area in Western Australia. It would take 18.1 years for a home buyer to save a 20% deposit. Its dwelling value was 13.6 times higher than the average annual gross income. The portion of income required to service a new mortgage was 65.8% and to pay rent, it was 38.5%.
Here is a list of the most affordable places in Perth:
| Places | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Kwinana | 4.4 | 5.9 | 21.4% | 26.8% |
| Serpentine–Jarrahdale | 4.8 | 6.4 | 23.3% | 24.6% |
| Armadale | 5.0 | 6.7 | 24.3% | 27.3% |
| Gosnells | 5.2 | 6.9 | 25.2% | 27.9% |
| Rockingham | 5.3 | 7.0 | 25.5% | 28.4% |
Where Are The Most Affordable Regional Places In Western Australia?
There were more affordable areas in regional Western Australia.
| Places | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Wheat Belt-South | 2.3 | 3.1 | 11.3% | 23.8% |
| Goldfields | 2.7 | 3.6 | 12.9% | 23.3% |
| East Pilbara | 3.5 | 4.6 | 16.8% | 32.1% |
| Wheat Belt–North | 3.9 | 5.2 | 18.9% | 27.3% |
| Mid West | 3.9 | 5.2 | 19.0% | 25.7% |
Where Are The Most Affordable Places In Hobart?
Hobart Inner was the least affordable area in the city. Its dwelling value was 9.8 times higher than the annual average gross income and it would take 13.1 years to save a 20% deposit. The portion of income required to service a new mortgage was 47.7% and to pay rent, it was 36%.
Here is a list of affordable areas in Hobart.
| Area | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Brighton | 6.5 | 8.6 | 31.3% | 33.1% |
| Sorrel–Dodges Ferry | 7.5 | 10.0 | 36.4% | 33.7% |
| Hobart North West | 7.6 | 10.1 | 36.8% | 38.0% |
Where Are The Most Affordable Places In Regional Tasmania?
There were more affordable places in regional Tasmania.
| Region | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| West Coast | 4.5 | 6.0 | 21.7% | 26.4% |
| Central Highlands | 5.5 | 7.4 | 26.9% | 33.2% |
| Burnie–Ulverstone | 6.0 | 8.0 | 29.0% | 32.3% |
Where Are the Most Affordable Places In Darwin?
Litchfield was the least affordable suburb in Darwin. Its dwelling value was 5.8 times higher than the average annual gross income and it would take a home buyer 7.7 years to save a 20% deposit. The portion of income to service a new home loan was 27.9% and to pay rent, it was 31.6%
Palmerston and Darwin city were the most affordable suburbs.
| Region | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Palmerston | 4.5 | 6.1 | 22.0% | 27.8% |
| Darwin City | 4.6 | 6.1 | 22.2% | 29.7% |
Where Are The Most Affordable Areas In Regional Northern Territory?
There were more affordable options in the regional Northern Territory.
| Region | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Katherine | 4.5 | 6.0 | 21.9% | 33.5% |
| Alice Springs | 5.2 | 6.9 | 25.2% | 30.3% |
Where Are The Most Affordable Places In Canberra?
Wooden Valley was the least affordable area in Canberra. The portion of the average median gross income required to service a new mortgage was 43.2% and to pay rent, it’s 27%. It would take the average borrower 11.9 years to save a 20% deposit and dwelling values were 8.9 times higher than annual gross income.
Here are the most affordable places in Canberra.
| Suburb | Value-to-income ratio | Years to save a deposit | Portion of income to service a new mortgage | Portion of income to pay rent |
|---|---|---|---|---|
| Molonglo | 2.5 | 3.3 | 12.0% | 12.5% |
| South Canberra | 6.0 | 8.0 | 29.2% | 26.3% |
| Tuggeranong | 6.6 | 8.7 | 31.8% | 29.2% |
How To Buy Your Dream Home Sooner
Getting the keys to your dream home might seem like a pipe dream as property prices keep rising every month. But following the tips below can help you buy your dream home sooner.
- Get pre-approved for a home loan so you know how much you can borrow and the price range to view.
- As banks are scrutinising debt-to-income ratios, try to get a handle on your debts and prove to the lender you can keep up with mortgage repayments.
- You don’t need to save a 20% deposit, as there are low-deposit options available. First home buyers can take advantage of government grants and schemes and buy a home with a deposit as low as 5%.
- Get a property report so you don’t overpay.
- Cast your net widely and look for suburbs outside of capital cities. You can use our postcode calculator to find out if banks will lend in the area where you’re looking.
- If your parents own property in Australia, they could be guarantors on your home loan. With a guarantor, you can borrow 100% without paying Lenders Mortgage Insurance.
- Get a team of homebuying experts from the onset of your home buying journey.
One expert you should have on your team is a mortgage broker. At Home Loan Experts, our mortgage brokers are with you throughout each step of your home-buying journey. We will help you straighten out your finances and get free valuations and credit reports. Call us on 1300 889 743 or enquire online today.
