Top 10 most affordable suburbs in Australia

• Spending over 30% of your income on rent is considered rental stress
• The list included some surprises like Sydney's inner-city Paddington
• "Affordable housing fuels our economy," said Suburbtrends founder Kent Lardner

Affordable housing remains a top priority for many Australians, as the cost of living continues to clamp down on household budgets.

While the build-to-rent relief will likely be some years away, the housing market may be seeing a turning point – unwelcome news for those waiting for Australian house prices to further decline.

While the May interest rate rise may have put some people off, following a pause in April, the latest figures from the Australian Bureau of Statistics (ABS) found a 5% rise in new home loan commitments for March. That uptick represented the first monthly increase since early 2022, but is down 26% from the same time last year.

What is affordable?

The latest research from Suburbtrends has identified some of Australia’s most affordable suburbs to rent or buy.

Not looking solely at Australian places that are cheap as chips, the study took into account a comprehensive set of criteria including:

• Median prices for units,
• Median household income levels,
• Rental affordability excluded situations of rental stress*,
• How long (in years) it will take to pay off the home, with a maximum of five years,
• Exclusion of suburbs with fewer than five units listed for sale,
• Exclusion of suburbs with more than 2% vacancy rate,
• A maximum suburb inventory level of five months, and
• A minimum SEIFA score of four.

Suburbtrend’s analysis found that 148 suburbs across the nation met the criteria, with Queensland leading the pack at 64 suburbs, followed by Western Australia at 42 suburbs.

Founder, Kent Lardner, said affordable housing is crucial to driving Australia’s prosperity.

“Affordable housing fuels our economy. When families are not burdened by housing costs, they can contribute more to the economy, benefiting both individual households and the broader economy.”

Kent Lardner, Suburbtrends

“Affordable housing is a vital tool against homelessness and poverty. Access to affordable housing promotes stability and resilience, reducing the risk of homelessness and providing a path out of poverty.”

Top 10 most affordable Australian suburbs

Source: Suburbtrends.

What’s behind the criteria?

The five-month inventory limit was set to both maintain demand and avoid oversupplied markets, said Suburbtrends.

Looking at suburbs with five or more current listings was done, “to ensure that the suburbs are large enough to hold relevance and interest for both buyers and renters.”

The 2% or lower vacancy rate was designed to filter out suburbs that had low demand from renters.

Bardon, 4065

Less than 10 kilometres west of the Brisbane CBD, this Queensland suburb will likely see you paying just 14% of your income on rent.

Purchasing a home will also be reasonably affordable, with the median price found to be around $750,000.

Asking rents for 4065, including Bardon

Whyalla, 5600

Over 200 kilometres northwest of the Adelaide CBD, this South Australian suburb will likely see you paying just 14% of your income on rent.

Purchasing a home will also be reasonably affordable, with the median price found to be around $165,000.

Asking rents for 5600, including Whyalla

Emerald, 4720

Less than 300 kilometres northwest of the Brisbane CBD, this Queensland suburb will likely see you paying just 15% of your income on rent.

Purchasing a home will also be reasonably affordable, with the median price found to be around $189,000.

Asking rents for 4720, including Emerald

Somerville, 6430

Over 300 kilometres northeast of the Perth CBD, located in Kalgoorlie, this Western Australian suburb will likely see you paying just 15% of your income on rent.

Purchasing a home will also be reasonably affordable, with the median price found to be around $285,000.

Asking rents for 6430, including Somerville

Kellyville Ridge, 2155

Less than 40 kilometres northwest of the Sydney CBD, this New South Wales suburb will likely see you paying just 16% of your income on rent.

Purchasing a home will also be reasonably affordable, with the median price found to be around $527,700.

Asking rents for 2155, including Kellyville Ridge

Paddington, 2021

Less than 5 kilometres east of the Sydney CBD, this New South Wales suburb will likely see you paying just 16% of your income on rent.

Purchasing a home will also be reasonably affordable, with the median price found to be around $806,850.

Asking rents for 2021, including Paddington

Ashgrove, 4060

Less than 5 kilometres northwest of the Brisbane CBD, this Queensland suburb will likely see you paying just 16% of your income on rent.

Purchasing a home will also be reasonably affordable, with the median price found to be around $585,800.

Asking rents for 4060, including Ashgrove

Idalia, 4811

Over 10 kilometres southwest of the Townsville CBD, this Queensland suburb will likely see you paying just 16% of your income on rent.

Purchasing a home will also be reasonably affordable, with the median price found to be around $270,000.

Asking rents for 4811, including Idalia

Point Cook, 3030

Less than 30 kilometres southwest of the Melbourne CBD, this Victoria suburb will likely see you paying just 17% of your income on rent.

Purchasing a home will also be reasonably affordable, with the median price found to be around $576,300.

Asking rents for 3030, including Point Cook

Malvern, 3144

Less than 10 kilometres southeast of the Melbourne CBD, this Victoria suburb will likely see you paying just 17% of your income on rent.

Purchasing a home will also be reasonably affordable, with the median price found to be around $638,600.

Asking rents for 3144, including Malvern

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* Rental stress (or mortgage stress) is commonly defined as paying more than 30% of your pre-tax income on rental payments (or mortgage repayments).