Yahoo Finance $380 a week: 26 suburbs where it’s better to rent than buy
Property prices are expected to slow down this year but, for now, many Aussies are still locked out of the property market due to exorbitant prices.
That’s not bad news for everyone though, in some suburbs renters actually rule the market, with many landlords reducing rent prices to entice people to move in.
Some unit markets in the inner and middle rings of our major cities have high vacancy rates, according to data from Well Home Loans.
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Also read: The 16 Aussie suburbs running out of homes to sell
Also read: Rental crisis: 17 suburbs where it’s impossible to rent
That has put downward pressure on rents – which is bad news for property investors but good news for tenants.
At the same time, there's a good chance many more units will be built in these suburbs in the coming years.
Increased supply would mean reduced demand, which would also put downward pressure on prices.
Well Home Loans CEO Scott Spencer said it’s hard to enter the market if you’re a first home buyer in Sydney and Melbourne.
“I feel for first home buyers in Sydney and Melbourne, because it’s really hard to buy a house close to the CBD,” he said.
“That means having to choose between buying an inner-ring or middle-ring unit – which might not suit someone who is planning to start a family – or buying a house on the city fringes – which can be hard if you have to commute to the CBD every day."
That's why it might be a good idea for Aussies to rent in these 26 suburbs rather than buy.
Where is it cheaper to rent than buy?
State | Suburb | Median weekly rent |
NSW | Wentworthville | $420 |
NSW | Auburn | $400 |
VIC | Box Hill | $390 |
VIC | Doncaster | $430 |
VIC | North Melbourne | $380 |
VIC | Maribyrnong | $380 |
VIC | Hawthorn East | $395 |
VIC | South Yarra | $420 |
VIC | Abbotsford | $400 |
VIC | Brunswick | $400 |
NSW | Toongabbie | $420 |
NSW | Canterbury | $450 |
NSW | Hurstville | $460 |
VIC | West Melbourne | $390 |
VIC | Moonee Ponds | $390 |
VIC | Williamstown | $400 |
VIC | South Melbourne | $430 |
VIC | Caulfield North | $410 |
VIC | Glen Iris | $400 |
VIC | Armadale | $420 |
NSW | Ryde | $460 |
NSW | Carlingford | $480 |
VIC | Heidelberg | $398 |
VIC | Malvern East | $360 |
VIC | Clayton | $410 |
VIC | Oakleigh | $395 |
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