By Joseph Ballota April 23, 2025

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It’s Now Cheaper to Buy Than Rent in These Australian Suburbs – But There’s a Catch

Property Market News
It’s Now Cheaper to Buy Than Rent in These Australian Suburbs – But There’s a Catch

Key takeaways

Despite the cost-of-living pressures and interest rate hikes, some Australian suburbs and regional hubs are bucking the trend.

In select locations, mortgage repayments are actually lower than local rents, creating a rare buy-vs-rent inversion.

But remember: low price doesn’t equal good value unless it comes with strong fundamentals and demand drivers.

Yes, you read that right — even in the middle of a cost-of-living crisis, there are still places around Australia where owning a home can be cheaper than renting.

But (and it’s a big but), you need to know where to look, and you need to act strategically.

The media’s been busy with doom and gloom headlines about housing affordability, interest rates, and rental stress, and while some of that concern is warranted, let’s not forget: property is not a national market.

It’s made up of hundreds of individual submarkets, each behaving differently.

And right now, in several of these submarkets, especially outer suburbs and high-growth regional hubs, we’re seeing a rare inversion: mortgage repayments that are lower than local rents.

Let’s unpack what’s going on.

Rental crisis + rising yields = opportunity for buyers

High population growth in our capital cities is fuelling a rental crisis.

Vacancy rates are hovering well below the national average, and in some areas, they’re below 1%.

That’s creating pressure on tenants, yes, but it’s also creating opportunities for buyers.

In these suburbs, especially where apartment prices are still relatively low, the maths can work in your favour.

Let’s take Goodna, west of Brisbane.

It’s in a flood zone (something to consider carefully), but its median unit price is just under $400,000.

Weekly rents, however, are well above $460.

For someone with a 20% deposit, mortgage repayments are around $1,958 a month — about $80 less than the median rent.

Not huge?

Maybe.

But we’re not just talking about saving a few dollars here.

We’re talking about paying down an asset instead of lining a landlord’s pockets.

And it’s not just Brisbane.

Where it’s cheaper to buy than rent (right now)

Here’s a quick snapshot of where the numbers stack up:

Orelia, WA: Median unit price $328,460, monthly repayments ~$1,617 vs rent ~$1,994. With WA experiencing the nation’s strongest population growth, that demand is unlikely to ease soon.
Salisbury, SA: In Adelaide’s tight market, median unit prices around $408,000 compare favourably to rents of ~$1,797/month. Repayments on a 30% deposit loan? Roughly $1,757.
Warwick Farm, NSW: Even in Sydney, you’ll find pockets like this — $420,000 units, where mortgage costs are ~$2,067/month vs $2,484 in rent. That’s a sizeable gap.
Werribee, VIC: A classic example of Melbourne’s more affordable west. With a median price around $414,589, mortgage costs are slightly under rents.
South Kempsey, NSW: A regional wildcard, just 20 minutes from the beach, where buying is $500/month cheaper than renting a modest house.
Moulden, NT: One of the strongest affordability cases — rents are ~$2,571/month, but you could own the same property with repayments of ~$2,001.
Lyons, ACT: Canberra’s high rents make even its affordable units appealing to buyers. A median apartment will cost ~$1,859/month to own, but rents are closer to $2,800.

What’s driving this?

This buy-vs-rent reversal is being driven by a combination of factors:

Rental supply crunch: With vacancy rates below 1% in many areas, rents have skyrocketed.
Rising construction costs: This has kept new supply constrained, especially in affordable segments.
Stalled investor activity: Many investors were sidelined during the rate hikes, exacerbating the rental crisis.
Variable mortgage flexibility: Owner-occupiers can often access lower rates than investors, giving buyers an edge.

So what we’re seeing is an environment where certain locations, especially those with high yields and low price points, are now more attractive to live in as an owner than as a tenant.

Should investors jump in?

This data highlights where rental yields are high, which will inevitably catch the eye of investors — and rightly so.

These suburbs are typically offering gross yields of 5–6%+ and have incredibly tight vacancy rates.

But as always, don’t just chase the yield.

Look at the bigger picture:

Demographic trends: Are people moving to these areas long-term?
Infrastructure investment: Is the government spending money nearby?
Economic drivers: Is there a diverse local economy?
Property type: Is it the kind of property tenants (or future buyers) will want?

And for owner-occupiers, the decision has an emotional layer too.

If you’re buying in a suburb because it’s cheaper than renting, make sure it also fits your lifestyle needs and long-term plans.

Don’t let the numbers blind you to liveability.

Final thoughts

This isn’t a widespread phenomenon — it’s not happening in Bondi or Brighton.

But for some first-home buyers with a decent deposit, there are pockets where owning beats renting.

It’s a reminder that despite interest rate hikes and affordability fears, the property market continues to offer smart buying opportunities if you know where to look.

Just remember: low prices don’t always mean good value.

But when they come with strong rental demand, growth potential, and solid fundamentals, they’re worth investigating.

About Joseph Ballota Joseph is a Property Coach who put hundreds of people on the road towards wiping away their mortgage in under 5 years through expert Property Investment Plans.