Where to find the most affordable properties in Australia

Karen Dellow
Karen Dellow

Recent data indicates that only a handful of regions remain within reach for households earning a median or lower income.

The inaugural PropTrack Affordability Hotspots Report sheds light on regions across Australia where median income earners can still manage to purchase a home.

Affordable housing in the inner cities is becoming scarce. Image: Getty.

Leveraging PropTrack's Housing Affordability Index, the report categorises the housing affordability of all Statistical Area Level 3 (SA3) areas nationwide, ranking them from most to least affordable.

SA3 regions generally have a population of between 30,000 and 130,000 people and often closely align to large urban Local Government Areas, for example, Geelong.

The most affordable areas are predominantly situated in Western Australia and Queensland, with Perth's Kwinana securing the top spot.

Top 10 most affordable capital city areas

Capital city area Region State Affordability Index Share of sales affordable for median household  Median price
Kwinana Perth - South West WA 0.79 20% $500,000
Gosnells Perth - South East WA 0.71 16% $520,000
Armadale Perth - South East WA 0.7 17% $515,000
Mandurah Mandurah WA 0.68 17% $545,000
Belmont - Victoria Park Perth - South East WA 0.68 22% $550,000
Swan Perth - North East WA 0.65 14% $555,000
Rockingham Perth - South West WA 0.65 10% $555,000
Melbourne City Melbourne - Inner VIC 0.64 24% $573,000
Perth City Perth - Inner WA 0.62 24% $540,000
Bayswater - Bassendean Perth - North East WA 0.62 17% $615,000
Source: PropTrack

In Kwinana, a median income household can still comfortably afford 20% of homes sold in the past year, allocating up to 25% of their pre-tax income to mortgage repayments.

Affordability continues to be a driving force in Western Australia's market strength, with Perth experiencing the largest price growth nationwide over the past year.

Nine of the top ten SA3 areas are located in Perth, while Melbourne City claims the eighth spot.

Inner Melbourne boasts a significant share of units, increasing affordability for median to lower-income households.

Inner city apartments offer an affordable option for median to lower income earners. Source: realestate.com.au.

A median income household in Melbourne City can afford 24% of homes sold, with additional affordable options in Essendon and Stonningham West.

However, for those in pursuit of houses, the western and northwestern regions offer the best affordability.

For property hunters eyeing affordable homes in regional areas, Queensland stands out as the most promising destination.

More than a third of regions where median income households can afford 20% of home sales are located in Queensland, with the Outback South region emerging as the most affordable hotspot in the state.

Top 10 most affordable regional areas

Regional area Region State Affordability Index Share of sales affordable for median household  Median price
Outback - South Queensland - Outback QLD 1.41 80% $180,000
Broken Hill and Far West Far West and Orana NSW 1.32 77% $190,000
Wheat Belt - South Western Australia - Wheat Belt WA 1.26 70% $260,000
Bourke - Cobar - Coonamble Far West and Orana NSW 1.2 66% $210,000
Outback - North Queensland - Outback QLD 1.2 68% $260,000
Charters Towers - Ayr - Ingham Townsville QLD 1.16 66% $267,000
Biloela Central Queensland QLD 1.15 74% $265,000
Outback - North and East South Australia - Outback SA 1.14 57% $230,000
Goldfields Western Australia - Outback (South) WA 1.08 59% $326,020
Darling Downs - Maranoa Darling Downs - Maranoa QLD 1.07 58% $310,000
Source: PropTrack.

In this area, a staggering 80% of properties are within the budget range of median income households, marking the highest proportion of affordable homes nationwide.

Additionally, the majority of properties are affordable in the Far West and Orana regions in NSW.

Broken Hill, Far West, and the Bourke, Cobar and Coonamble regions are the most affordable areas in NSW, with 77% and 66% of properties respectively falling within the budget range of median households.

Despite their remoteness, these regions maintain high accessibility for households with median incomes, with over two-thirds of homes considered affordable.

Regional Australia offers more affordable housing than the cities. Image: Getty.

Other regional areas nationwide, such as Western Australia's Wheat Belt and South Australia's Outback regions, also secure positions in the top 10 for affordability.

In Victoria, the Grampians region boasts the largest share of affordable homes.

However, the data underscores that affordability in capital cities has reached an all-time low, presenting significant challenges for property seekers to find suitable homes within their budget.

While regional areas offer more affordable options, reduced job opportunities in many of these locales poses challenges for securing employment with a good income.

The dwindling number of affordable regions for median to low-income households underscores the influence of existing wealth in accessing homeownership, given the prevailing high property prices nationwide.

Check out more PropTrack insights

Related Stories

Request a demo

A PropTrack advisor will call you back to organise an demonstration

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Phasellus hendrerit. Pellentesque aliquet nibh nec urna. In nisi neque, aliquet vel, dapibus id, mattis vel, nisi. Sed pretium, Nullam mollis. Ut justo. Suspendisse potenti. Privacy Policy