Summary
Key takeaways
The Australian rental market is exceptionally volatile right now, with renters trying to cope with the rising costs.
Over the past few years, rents have been climbing steadily, creating a crisis that has affected the lives of many Australians.
This rental crisis has started to influence socio-economic issues nationwide.
Surprisingly Adelaide and Melbourne seem to offer the most affordable places to rent, while Sydney suburbs with units dominating the lists for each major city.
Do you know which areas or suburbs in Australia are leading in terms of rental affordability?
Or how does your suburb rank in terms of rent prices compared to the rest of the country?
It’s old news that we’re suffering a rental crisis.
But with a severe undersupply and growing demand forcing rents to skyrocket and the problem only expected to get worse, you may be looking for more affordable accommodation.
According to the latest CoreLogic data, Adelaide is home to the most affordable suburb for a rental house.
Elizabeth South is a northern suburb of Adelaide and has houses for rent at a median price of $393.
Melton in Melbourne’s west comes in a close second with its $395 median rent for houses.
The area also comes at the top of the list for units too.
Melbourne’s Melton South has the cheapest median unit rent at $345 per week, ahead of Woodridge in Brisbane which has a $352 per week rent.
On the other hand, Sydney’s Vaucluse and Darling Point are the most expensive suburbs for rent for houses and units at $2,588 and $1,168 per week respectively.
Below are the Top 10 Affordable Areas to Rent in Major Australian Cities for 2024.
Source: CoreLogic
Sydney’s most affordable suburbs are concentrated around the city’s western suburbs.
Each of the suburbs on the most affordable list for Sydney is for unit rentals, with Carramar in Sydney’s Parramatta area coming in with the most affordable median rent (at $389 per week).
Source: CoreLogic
Nine out of Melbourne’s top 10 most affordable suburbs for rentals are for units.
Melton South is at the top of the list.
Here, renters can secure a unit for around $345 per week in rent.
Meanwhile, nearby Melton also makes the list as the suburbs with the most affordable rental houses – at $395 per week.
Source: CoreLogic
Again, 9 of the 10 most affordable Brisbane suburbs are for units and 4 of the suburbs on the list are located in the Logan-Beaudesert area.
Renters can expect to pay as little as $352 per week in Woodridge or if they’re looking for a house then the most affordable suburb is Russell Island in Brisbane’s East where the median house rent is $413 per week.
Source: CoreLogic
Over in Adelaide both units and houses make the top 10 list, although the top 7 suburbs are all located in Aldelaide’s northern region.
Salisbury East sits in the top spot, where renters can find properties with a $361 per week median price while Elizabeth South has houses for a median of $393 per week median.
Source: CoreLogic
Perth’s affordable suburbs are mostly located across the city’s South West, North East, and South East and all are for units.
Dudley Park in Mandurah has the most affordable units for rent, with a median $371 per week price.
Source: CoreLogic
Hobart’s rental prices have suffered a small drop across the board lately, likely due to a shift in its population and therefore demand levels.
There are still many affordable options, however.
Renters can find units in Claremont for around $411 per week or houses in Primrose Sands for around $443 per week.
Source: CoreLogic
Darwin’s list is also dominated by units, although two suburbs make the list for their affordable house prices.
The most affordable suburbs in Darwin start at as little as $457 per week – for units in Bakewell – up to $549 per week for houses in Gray.
Source: CoreLogic
Canberra’s most affordable suburbs list is dominated by units.
Starting at a $468 per week median for units in Lyons, renters can find themselves paying under $540 per week across all 10 suburbs on the list.
While the above list makes for interesting reading, these aren’t necessarily suburbs I’d recommend investing in.
Generally, these affordable areas with low median prices are in areas where demand is low, land is vast, and amenities and transport links are hard to come by.
As I always say, when it comes to investing it’s not just the property – it’s mainly about location.
I believe that location will do about 80% of the heavy lifting of your property’s capital growth.
And not all locations are created equal.
Some suburbs will be more popular than others, some areas will have more scarcity than others and over time some land will increase in value more than others.
The suburbs mentioned in the lists above might look like a well-priced investment opportunity but they’re cheap for a reason: location.
And the location is something you cannot change.
That’s why it’s important to buy your investment property in a suburb that is dominated by more homeowners, rather than a suburb where tenants predominate.
And you’ll find suburbs where more affluent owners live will outperform the cheaper outer suburbs where wage growth is likely to stagnate moving forward.
This is because the more established suburbs with better infrastructure, shopping, and amenities tend to be close to the CBD and the water and that’s where the wealthy want to and can afford to live, and they’re prepared to pay a premium to live there.
Overall, by focusing your research on what those often overlooked owner-occupiers are doing, you may just find an investment that outperforms the market and delivers strong value and growth over the long term.
Also read
You’ll never believe the most affordable regions to rent in Australia
Latest Asking Prices State by State | March Total Housing Listings rise by 6.9%
The latest Corelogic Rental Market Report
Melbourne property market forecast for 2024
Brisbane’s property market forecast for 2024
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