Key facts
- Mortgage repayments are cheaper than rent in dozens of Australian suburbs.
- Median rents rose 5.5% to $713 per week by September.
- Median property prices were flat over the year after six months of falls.
- In some suburbs, buying is significantly more affordable than renting.
- Areas with significant apartment development tend to be cheaper to buy than rent.
High rents and falling property prices have created an opportunity for some Australians to transition from renting to homeownership, with mortgage repayments now cheaper than rent in numerous suburbs nationwide. Analysis of Cotality data by Guardian Australia indicates that in about one in 10 suburbs, weekly home loan repayments are less than $200 higher than rent, and in some cases, they are even cheaper. Australia's median rent prices increased by 5.5% to $713 per week by September, while median property prices remained flat after a period of decline. In Melbourne, the typical apartment rent was $628 weekly, with mortgage repayments at $839 weekly. However, in specific suburbs like Carlton, Melbourne CBD, Notting Hill, Travancore, and Southbank, repayments were found to be cheaper than rent. Mortgage broker Clint Waters noted a rise in inquiries from renters assessing their capacity to buy, especially as landlords look to sell properties. Areas with substantial apartment development, particularly where units are sold directly to owner-occupiers, are seeing purchase prices fall below rental equivalents, according to Cotality researcher Gerard Burg. This trend is observed in suburbs like Ultimo in Sydney and Belconnen and Phillip in Canberra, where the gap between renting and buying costs has narrowed significantly. Darwin also features suburbs where buying is cheaper than renting, often linked to mining or resource project areas.