Key takeaways
Surprisingly Hobart stands out as the capital city with the highest share of affordable rental listings, but Melbourne suburbs dominate the top 10 lists.
Adelaide comes second for units with 57% of its 6,152 listings asking for weekly rent under $500, while Melbourne comes second for houses with 30% of its 52,929 listings asking for weekly rent under $500.
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.
Surprisingly Hobart stands out as the capital city with the highest share of affordable rental listings, but Melbourne suburbs dominate the top 10 lists.
A new analysis by Ray White uses the benchmark of ‘under $500 per week’ for its affordability rating.
After crunching the numbers for average weekly earnings ($1,431) relative to the 33-35% maximum recommended spend on rent, senior data analyst Atom Go Tian concluded that in order to be labelled ‘affordable’, rent should only be between $475-500 per week.
Note: For reference, as of April 2024, CoreLogic reported median asking rent at $600 for both houses and units.
Using the share of listings under $500 as the benchmark for ‘affordability’, Hobart stands out for renters with 32% of all house listings and 62% of all unit listings over the last 12 months coming with an asking rent under $500.
Adelaide comes second for units with 57% of its 6,152 listings asking for weekly rent under $500, while Melbourne comes second for houses with 30% of its 52,929 listings asking for weekly rent under $500.
In terms of houses, Gold Coast and Canberra are the least affordable with only two and four per cent of their listings coming under $500 (not that there were many listings to begin with).
In terms of houses, it’s Sydney and Gold Coast that trail the pack.
Share of total listings under $500 from the last 12 months (as of Apr 2024):
| City | Total house listings | House share under $500 | Total unit listings | Unit share under $500 |
|---|---|---|---|---|
| Hobart | 3,107 | 32% | 1,493 | 62% |
| Adelaide | 13,302 | 24% | 6,152 | 57% |
| Darwin | 1,192 | 14% | 1,935 | 42% |
| Melbourne | 52,929 | 30% | 71,697 | 39% |
| Brisbane | 33,075 | 14% | 23,724 | 33% |
| Perth | 21,668 | 11% | 12,168 | 30% |
| Canberra | 3,427 | 4% | 7,148 | 22% |
| Sydney | 49,353 | 11% | 105,346 | 14% |
| Gold Coast | 6,947 | 2% | 8,355 | 10% |
| Capital City Average | 185,000 | 18% | 238,018 | 27% |
Source: Ray White
The most affordable Aussie suburbs to rent a house
In terms of the most affordable suburbs for renters looking for a house, the data reveals that Melbourne is the undisputed favourite; no other city comes close to the volume of listings with asking rent under $500.
Within Melbourne, you would want to keep your eye out for Werribee where almost three quarters of house listings have an asking rent under $500.
Go Tian
Hoppers Crossing, Wallan, and Melton South also have a very high share of listings with asking rent under $500.
Suburbs with the most house listings under $500:
| City | Suburb | Total listings | Under $500 | Median rent |
|---|---|---|---|---|
| Melbourne | Werribee | 981 | 729 | $430 |
| Melbourne | Tarneit | 1,501 | 532 | $500 |
| Melbourne | Wyndham Vale | 687 | 518 | $450 |
| Melbourne | Point Cook | 1,538 | 398 | $525 |
| Melbourne | Hoppers Crossing | 489 | 392 | $430 |
| Melbourne | Truganina | 1,012 | 379 | $493 |
| Melbourne | Pakenham | 778 | 342 | $490 |
| Melbourne | Wallan | 407 | 330 | – |
| Melbourne | Craigieburn | 728 | 316 | $490 |
| Melbourne | Melton South | 315 | 297 | $390 |
Source: Ray White, CoreLogic
Most affordable Aussie suburbs to rent a unit
The list is slightly more diverse for renters looking for units.
Of the top 10 most affordable suburbs, half come from Melbourne, three come from Adelaide, while Hobart and Sydney offer one.
Suburbs with the most unit listings under $500:
| City | Suburb | Total listings | Under $500 | Median rent |
|---|---|---|---|---|
| Melbourne | Melbourne | 8,027 | 1,333 | $615 |
| Adelaide | St Kilda | 1,583 | 774 | $480 |
| Melbourne | South Yarra | 2,145 | 685 | $550 |
| Hobart | Carlton | 1,459 | 674 | $500 |
| Sydney | Liverpool | 1,190 | 621 | $450 |
| Melbourne | Reservoir | 888 | 532 | $450 |
| Melbourne | Footscray | 1,005 | 527 | $460 |
| Adelaide | Hawthorn | 1,024 | 491 | $480 |
| Melbourne | Frankston | 576 | 464 | $430 |
| Adelaide | Richmond | 1,168 | 405 | $550 |
Source: Ray White, CoreLogic
So, where is the cheapest suburb to rent in my area?
Here’s a breakdown of the top 10 affordable areas to rent in each major Australian city, according to Corelogic’s latest quarterly rental review.
Most affordable Sydney suburbs
| Suburb | Region | Property type | Median value | Gross rental yield | Median Rent | Quarterly Change | Annual Change | Vacancy rate | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Carramar | Sydney – Parramatta | Units | $401,034 | 5.16% | $389 | 1.10% | 9.20% | 0.80% |
| 2 | Cabramatta | Sydney – South West | Units | $432,483 | 4.67% | $391 | 3.30% | 10.70% | 0.30% |
| 3 | Canley Vale | Sydney – South West | Units | $439,313 | 4.72% | $402 | 2.70% | 8.90% | n.a |
| 4 | Berkeley Vale | Central Coast | Units | $379,669 | 5.63% | $410 | -1.50% | -3.00% | 1.40% |
| 5 | Fairfield | Sydney – South West | Units | $396,190 | 5.54% | $420 | 4.30% | 14.10% | 0.30% |
| 6 | Leumeah | Sydney – Outer South West | Units | $452,742 | 4.98% | $424 | 3.70% | 9.90% | n.a |
| 7 | Jamisontown | Sydney – Outer West and Blue Mountains | Units | $462,139 | 4.66% | $429 | 2.60% | 10.30% | 0.80% |
| 8 | Wyong | Central Coast | Units | $483,430 | 4.91% | $430 | -1.20% | 2.80% | 2.90% |
| 9 | Warwick Farm | Sydney – South West | Units | $409,386 | 5.72% | $434 | 3.60% | 14.00% | 1.00% |
| 10 | Cranebrook | Sydney – Outer West and Blue Mountains | Units | $658,165 | 3.50% | $437 | -1.60% | 8.30% | 2.00% |
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).
Most affordable Melbourne suburbs
| Suburb | Region | Property type | Median value | Gross rental yield | Median Rent | Quarterly Change | Annual Change | Vacancy rate | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Melton South | Melbourne – West | Units | $366,810 | 4.94% | $345 | 2.20% | 8.40% | 1.00% |
| 2 | Melton | Melbourne – West | Units | $371,901 | 4.96% | $350 | 1.60% | 8.70% | 0.40% |
| 3 | Albion | Melbourne – West | Units | $406,343 | 5.00% | $366 | 2.90% | 14.60% | 0.20% |
| 4 | Werribee | Melbourne – West | Units | $419,264 | 4.70% | $379 | 3.70% | 11.80% | 0.40% |
| 5 | Bacchus Marsh | Melbourne – West | Units | $410,002 | 4.48% | $380 | 1.70% | 6.50% | 0.60% |
| 6 | Darley | Melbourne – West | Units | $431,733 | 4.85% | $389 | 1.90% | 9.00% | n.a |
| 7 | Hoppers Crossing | Melbourne – West | Units | $425,073 | 4.76% | $389 | 4.40% | 13.10% | 0.30% |
| 8 | Melton | Melbourne – West | Houses | $468,003 | 4.34% | $395 | 3.70% | 9.70% | 0.90% |
| 9 | Wallan | Melbourne – North East | Units | $456,351 | 4.88% | $396 | 2.70% | 9.80% | 0.50% |
| 10 | St Albans | Melbourne – West | Units | $473,502 | 4.55% | $398 | 2.40% | 12.20% | 0.60% |
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.
Most affordable Brisbane suburbs
| Suburb | Region | Property type | Median value | Gross rental yield | Median Rent | Quarterly Change | Annual Change | Vacancy rate | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Woodridge | Logan – Beaudesert | Units | $268,892 | 7.03% | $352 | 2.10% | 9.90% | 0.20% |
| 2 | Caboolture | Moreton Bay – North | Units | $318,040 | 6.58% | $370 | 1.90% | 9.80% | 0.80% |
| 3 | Bundamba | Ipswich | Units | $338,852 | 6.52% | $384 | 3.90% | 12.20% | n.a |
| 4 | Mount Warren Park | Logan – Beaudesert | Units | $353,232 | 6.05% | $391 | 2.50% | 12.40% | n.a |
| 5 | Beenleigh | Logan – Beaudesert | Units | $324,795 | 6.36% | $394 | 3.90% | 14.30% | 0.40% |
| 6 | Lawnton | Moreton Bay -South | Units | $401,043 | 5.56% | $395 | 2.00% | 11.20% | 0.40% |
| 7 | Goodna | Ipswich | Units | $323,637 | 6.51% | $396 | 3.00% | 13.60% | 1.00% |
| 8 | Waterford West | Logan – Beaudesert | Units | $289,447 | 6.51% | $402 | 2.60% | 15.30% | 0.80% |
| 9 | Russell Island | Brisbane- East | Houses | $386,306 | 5.50% | $413 | 2.20% | 5.40% | 3.70% |
| 10 | Redbank Plains | Ipswich | Units | $375,828 | 5.76% | $426 | 3.30% | 13.90% | 1.00% |
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.
Most affordable Adelaide suburbs
| Suburb | Region | Property type | Median value | Gross rental yield | Median Rent | Quarterly Change | Annual Change | Vacancy rate | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Salisbury East | Adelaide – North | Units | $319,582 | 5.96% | $361 | 4.40% | 8.80% | n.a |
| 2 | Salisbury | Adelaide – North | Units | $315,932 | 6.39% | $378 | 5.80% | 14.30% | 0.20% |
| 3 | Elizabeth South | Adelaide – North | Houses | $357,954 | 5.64% | $393 | 3.30% | 9.80% | 0.70% |
| 4 | Kilburn | Adelaide – North | Units | $392,685 | 5.24% | $397 | 4.50% | 11.40% | n.a |
| 5 | Elizabeth North | Adelaide – North | Houses | $340,864 | 6.14% | $398 | 1.90% | 8.10% | 0.20% |
| 6 | Elizabeth Grove | Adelaide – North | Houses | $370,311 | 5.63% | $399 | 3.30% | 8.50% | 1.30% |
| 7 | Klemzig | Adelaide – North | Units | $394,231 | 5.32% | $402 | 4.60% | 7.90% | n.a |
| 8 | St Marys | Adelaide – South | Units | $413,903 | 5.27% | $403 | -0.40% | 9.40% | n.a |
| 9 | New Port | Adelaide- West | Units | $374,920 | 5.61% | $406 | 2.20% | 9.00% | n.a |
| 10 | Brooklyn Park | Adelaide- West | Units | $390,249 | 5.42% | $407 | 4.40% | 14.80% | 0.30% |
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.
Most affordable Perth suburbs
| Suburb | Region | Property type | Median value | Gross rental yield | Median Rent | Quarterly Change | Annual Change | Vacancy rate | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Dudley Park | Mandurah | Units | $290,337 | 6.27% | $371 | 2.90% | 3.60% | 0.60% |
| 2 | Orelia | Perth – South West | Units | $217,387 | 9.56% | $380 | 3.70% | 20.60% | 0.50% |
| 3 | Shoalwater | Perth – South West | Units | $257,910 | 7.61% | $384 | 5.80% | 13.20% | 0.40% |
| 4 | Ellenbrook | Perth – North East | Units | $334,482 | 6.37% | $408 | -0.10% | 14.60% | n.a |
| 5 | Midland | Perth – North East | Units | $327,674 | 7.10% | $433 | 1.80% | 14.20% | 0.60% |
| 6 | BaIdivis | Perth – South West | Units | $358,952 | 6.26% | $436 | 0.90% | 10.30% | 0.60% |
| 7 | Kelmscott | Perth – South East | Units | $286,899 | 8.12% | $437 | 3.50% | 14.90% | 0.80% |
| 8 | Armadale | Perth – South East | Units | $307,285 | 8.17% | $441 | 1.90% | 13.50% | 0.90% |
| 9 | Gosnells | Perth – South East | Units | $321,803 | 7.56% | $441 | 1.90% | 15.70% | 0.20% |
| 10 | Noranda | Perth – North East | Units | $346,444 | 6.89% | $445 | 1.20% | 13.80% | n.a |
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.
Most affordable Hobart suburbs
| Suburb | Region | Property type | Median value | Gross rental yield | Median Rent | Quarterly Change | Annual Change | Vacancy rate | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Claremont | Hobart | Units | $434,385 | 5.11% | $411 | -1.70% | -3.60% | 1.10% |
| 2 | West Moonah | Hobart | Units | $440,619 | 5.08% | $422 | -1.10% | -1.60% | 2.60% |
| 3 | Glenorchy | Hobart | Units | $429,811 | 5.45% | $431 | -1.30% | -0.80% | 1.50% |
| 4 | Primrose Sands | Hobart | Houses | $510,180 | 4.57% | $443 | -0.60% | 0.90% | 4.80% |
| 5 | Brighton | Hobart | Units | $460,768 | 5.24% | $448 | -0.70% | -2.10% | 0.80% |
| 6 | Lindisfarne | Hobart | Units | $529,663 | 4.53% | $456 | -1.20% | -1.60% | 3.00% |
| 7 | New Town | Hobart | Units | $485,726 | 4.82% | $463 | -2.20% | -0.30% | 3.00% |
| 8 | New Norfolk | Hobart | Houses | $464,327 | 5.08% | $466 | -0.90% | -1.20% | 1.40% |
| 9 | Bellerive | Hobart | Units | $541,611 | 4.52% | $467 | -0.90% | -2.50% | 0.80% |
| 10 | Kingston | Hobart | Units | $550,954 | 4.63% | $468 | -2.00% | 0.20% | 2.00% |
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.
Most affordable Darwin suburbs
| Suburb | Region | Property type | Median value | Gross rental yield | Median Rent | Quarterly Change | Annual Change | Vacancy rate | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Bakewell | Darwin | Units | $283,291 | 8.22% | $457 | 2.10% | 2.90% | 1.70% |
| 2 | Leanyer | Darwin | Units | $341,022 | 7.50% | $468 | 1.40% | 0.20% | 1.10% |
| 3 | Coconut Grove | Darwin | Units | $347,262 | 7.43% | $475 | 2.70% | 2.40% | 0.90% |
| 4 | Millner | Darwin | Units | $332,991 | 7.87% | $478 | 3.00% | 6.30% | 2.70% |
| 5 | Rapid Creek | Darwin | Units | $392,673 | 6.87% | $494 | 1.10% | 2.10% | 2.00% |
| 6 | Nightcliff | Darwin | Units | $382,536 | 7.24% | $495 | 1.80% | 3.40% | 1.60% |
| 7 | Rosebery | Darwin | Units | $337,281 | 7.90% | $508 | 3.20% | 5.00% | 0.40% |
| 8 | Parap | Darwin | Units | $379,834 | 7.67% | $537 | 4.30% | 6.40% | 2.00% |
| 9 | Moulden | Darwin | Houses | $386,675 | 7.35% | $539 | 3.60% | 5.30% | 1.40% |
| 10 | Gray | Darwin | Houses | $374,860 | 7.75% | $549 | 2.70% | 2.80% | 3.00% |
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.
Most affordable Canberra suburbs
| Suburb | Region | Property type | Median value | Gross rental yield | Median Rent | Quarterly Change | Annual Change | Vacancy rate | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Lyons | Australian Capital Territory | Units | $450,051 | 5.10% | $468 | -0.90% | -3.30% | 1.90% |
| 2 | Chifley | Australian Capital Territory | Units | $575,440 | 4.42% | $494 | 0.40% | -3.00% | 1.20% |
| 3 | Hawker | Australian Capital Territory | Units | $475,355 | 5.81% | $501 | -1.60% | 2.50% | 4.50% |
| 4 | Mawson | Australian Capital Territory | Units | $637,843 | 4.78% | $528 | -0.60% | 1.10% | 0.70% |
| 5 | Gungahlin | Australian Capital Territory | Units | $465,439 | 6.07% | $529 | 0.10% | -0.70% | 1.90% |
| 6 | Phillip | Australian Capital Territory | Units | $532,120 | 5.27% | $530 | 0.10% | -0.70% | 1.30% |
| 7 | Harrison | Australian Capital Territory | Units | $538,792 | 5.42% | $532 | -0.20% | -1.70% | 1.20% |
| 8 | Belconnen | Australian Capital Territory | Units | $541,195 | 5.40% | $534 | 0.30% | -0.20% | 1.40% |
| 9 | Greenway | Australian Capital Territory | Units | $533,163 | 5.43% | $536 | 1.10% | 0.00% | 2.90% |
| 10 | Wright | Australian Capital Territory | Units | $533,065 | 5.37% | $539 | -0.50% | -3.20% | 1.90% |
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.
The key takeaway
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.
