A new report from Domain has identified specific suburbs across Australia where it is now cheaper to buy a home than to rent.
The analysis compares mortgage repayments to rental prices in thousands of suburbs nationwide, factoring in expected interest rate cuts that could further improve borrowing power.
While home ownership remains financially out of reach for many in the nation’s largest cities, the data suggests that affordability is more achievable in select regional areas and for those considering units over houses.
According to the findings, just 6 per cent of suburbs across the country have lower mortgage costs than rental costs for houses.
Units, however, provide a stronger affordability case, with 22.8 per cent of suburbs offering lower mortgage repayments than rent.
Regional Australia continues to show the greatest affordability advantage. In these areas, 14 per cent of houses and 31.3 per cent of units are now cheaper to buy than rent.
By contrast, major metropolitan areas remain challenging for buyers.
In Sydney, Melbourne and Adelaide, there are no suburbs where it is cheaper to service a mortgage on a house than to rent. In Brisbane, the same is true for 94.6 per cent of suburbs.
Perth emerges as the most affordable capital city for home ownership, particularly for units. The research found that in 82.9 per cent of Perth suburbs, it is cheaper to buy a unit than rent. Regional Western Australia, particularly areas in the Pilbara, also ranks highly for ownership affordability.
Domain’s National Property Editor, Alice Stolz, said the data provides valuable insight for prospective buyers, especially those prepared to look outside traditional hotspots.
“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,” Ms Stolz said.
She acknowledged the ongoing pressures facing renters, from rising living costs to the difficulty of saving a deposit, but noted the broader environment is beginning to shift.
“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,” she said.
The report comes amid continued scrutiny of housing affordability and rental pressures, with policymakers and economists closely watching interest rate movements and housing supply.
While the data does not suggest a broad affordability shift across the country, it does highlight the importance of granular, suburb-level analysis for buyers willing to consider alternative locations or property types.
