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Why Renting Might Be Costing You More Than a Mortgage
Despite Australia’s ongoing cost-of-living crisis, there are still suburbs across the country where purchasing a home is more affordable than paying rent. With rental prices surging due to housing shortages, mortgage repayments in certain areas are actually lower than monthly rent costs—especially for those with a 20-30% deposit.
If you’ve been struggling with high rental costs, now might be the time to consider buying. With mortgage rates stabilising and rental vacancy rates at record lows in many regions, purchasing a home in these key suburbs could be a financially smarter move.
Where It’s Cheaper to Buy Than Rent
A recent analysis has pinpointed multiple suburbs across every Australian state and territory where homeownership costs less than renting. Many of these locations are in high-growth areas, benefiting from strong rental yields and increasing demand.
Queensland – Goodna (Ipswich)
- Median Unit Price: $397,770
- Mortgage Repayments (20% deposit): $1,958/month
- Median Rent: $2,038/month
Goodna, a suburb in Ipswich just southwest of Brisbane, has become a rental hotspot with low vacancy rates. However, buying a unit here with a 20% deposit results in lower monthly mortgage payments compared to renting.
Western Australia – Orelia (Perth South)
- Median Unit Price: $328,460
- Mortgage Repayments (20% deposit): $1,617/month
- Median Rent: $1,994/month
Perth’s booming population has driven rental demand sky-high, making suburbs like Orelia an attractive option for home buyers looking to pay less than they would for rent.
Australians can still buy a property for less than the cost of renting if they focus on suburbs with a housing shortage (pictured is Springfield in Ipswich)
Goodna’s median apartment price of $397,770 is attainable for a middle-income earner
Orelia, near Kwinana south of Perth, has an ultra-affordable middle unit price of $328,460
Salisbury in Adelaide’s north has an affordable median apartment price of $408,040
South Australia – Salisbury (Adelaide North)
- Median Unit Price: $408,040
- Mortgage Repayments (30% deposit): $1,757/month
- Median Rent: $1,797/month
Once a working-class suburb, Salisbury has transformed into an affordable buying location. While Adelaide’s rental market is extremely tight, mortgage repayments remain lower than rent costs here.
New South Wales – Warwick Farm (Sydney’s South West)
- Median Unit Price: $420,059
- Mortgage Repayments (20% deposit): $2,067/month
- Median Rent: $2,484/month
Sydney’s property market is known for its high prices, but Warwick Farm offers an exception. Buying an apartment in this growing suburb can save renters nearly $500 a month.
Warwick Farm’s mid-point apartment price is still cheap at $420,059 in a city that receives a big influx of overseas migration
Victoria – Werribee (Melbourne’s West)
- Median Unit Price: $414,589
- Mortgage Repayments (30% deposit): $1,785/month
- Median Rent: $1,800/month
Melbourne’s outer suburbs continue to offer great value, and Werribee stands out as a top pick for those looking to escape high rental costs.
New South Wales – South Kempsey (Mid-North Coast)
- Median House Price: $421,908
- Mortgage Repayments (30% deposit): $2,077/month
- Median Rent: $2,576/month
For those willing to look beyond city limits, South Kempsey provides an affordable lifestyle near the beach while still offering significant savings compared to renting.
South Kempsey has an affordable median house price of $421,908 and it’s just a 20-minute drive to the beach at Crescent Head
Northern Territory – Moulden (Palmerston, Darwin)
- Median House Price: $406,582
- Mortgage Repayments (20% deposit): $2,001/month
- Median Rent: $2,571/month
With Darwin’s rental market becoming increasingly unaffordable, purchasing a property in Moulden allows buyers to secure a home for much less than renting.
Merebein, a suburb of Mildura in north-west Victoria, has a particularly affordable median house price of $374,385
The Palmerston suburb of Moulden’s mid-point house price of $406,582 is particularly low
Tasmania – Mowbray (Launceston North)
- Median House Price: $425,117
- Mortgage Repayments (30% deposit): $1,831/month
- Median Rent: $2,041/month
Tasmania’s property market remains competitive, but Mowbray offers one of the last opportunities to buy below rental prices.
Australian Capital Territory – Lyons (Canberra South)
- Median Unit Price: $377,743
- Mortgage Repayments (20% deposit): $1,859/month
- Median Rent: $2,813/month
Canberra renters could be spending nearly $1,000 extra each month compared to buyers in suburbs like Lyons.
Launceston, in northern Tasmania, has pockets of affordability with Mowbray having a median house price of $425,117
Lyons, in the Canberra’s south, has a mid-point apartment price of $377,743
Why Are These Suburbs So Affordable?
The key to these suburbs offering lower mortgage repayments than rent comes down to:
- High rental demand: Population growth and limited housing supply have driven up rents.
- Strong rental yields: Investors earn strong rental returns, making it an appealing market for buyers.
- Lower property prices: Affordable unit and house prices mean lower mortgage repayments compared to renting.
Is Now the Time to Buy?
With mortgage rates stabilising and housing demand rising, these suburbs offer unique opportunities for first-home buyers, investors, and renters looking to make the switch to homeownership.
If you’re currently renting, it’s worth doing the numbers to see if buying could save you money each month—and help you build long-term wealth in the process.
SOURCE: THE DAILY MAIL