Identifying where to live in Australia purely based on median house prices can be challenging, yet it remains a key factor when deciding which suburb and state to call home. Affordability challenges include rising interest rates and stagnant wage growth, making it harder for Australians to find affordable properties. New South Wales and Sydney remains the most expensive place to buy property in the country. After extensive research into property trends, housing data, and cost of living analysis across Australia, keep scrolling for a more detailed look at each state and capital city. This article ranks each state and territory from cheapest to most expensive.
First – Northern Territory (NT)
The Northern Territory, despite its high median house price, offers unique affordability benefits, especially in its regional areas.
- Affordability Score: 3/10
- Median House Price: $511,000
- Price Growth (Annual): 7%
- Cost of Living: 6/10
The Northern Territory, with Darwin as its capital, has a high median house price relative to other states but offers affordability in terms of lower living costs and less competition in the housing market. The Territory also provides unique lifestyle opportunities, particularly for those working in industries like mining or tourism.
Darwin’s median house price is around $579,000, but the housing market is smaller and less competitive than in larger cities. The region has seen a 7% annual growth in house prices. While the cost of living can be high due to the remote location, this is often offset by higher wages in key industries. Regional areas, although less populated, offer even more affordable housing options with unique lifestyle benefits.
The Northern Territory is ideal for those seeking a more remote lifestyle or those employed in high-paying industries like mining, who can afford the higher costs in exchange for a unique living environment.
Second – Tasmania (TAS)
Tasmania is the most affordable state for buying a property in Australia. With relatively low median house prices and a slower rate of growth compared to the mainland, it offers excellent value for money.
- Affordability Score: 9/10
- Median House Price: $610,000
- Price Growth (Annual): 5%
- Cost of Living: 7/10
Tasmania’s affordability is bolstered by its lower median house prices, which are significantly below the national average. In Hobart, the capital, house prices are still relatively low compared to other capital cities. Additionally, the state’s economy has been growing, but not at a pace that has caused rapid inflation in property prices. Regional areas like Launceston and Devonport also offer affordable options with excellent amenities and growing job markets.
Recent statistics highlight that Tasmania’s median house price of $690,000 is still one of the lowest in the country, making it an attractive option for first-home buyers and retirees. The steady yet modest price growth of 5% per annum means that while properties are increasing in value, they remain accessible for many buyers. Additionally, the cost of living in Tasmania is moderate, with lower utility costs and property taxes compared to mainland states.
In summary, Tasmania is ideal for young professionals and retirees seeking affordable living with a slower pace of life. It’s also a great choice for nature lovers who appreciate the state’s stunning landscapes.
Third – Western Australia (WA)
Western Australia provides affordable housing options, particularly in Perth and its surrounding suburbs.
- Affordability Score: 7/10
- Median House Price: $650,000
- Price Growth (Annual): 7%
- Cost of Living: 7/10
Western Australia’s housing market is relatively affordable, especially in Perth, where house prices remain lower than in other major capitals. The state’s economy, driven by the resources sector, offers strong employment opportunities, which in turn supports housing demand.
Perth’s median house price of $736,000 is significantly more affordable than Sydney and Melbourne. The market has experienced a 7% annual growth, reflecting a stable yet accessible property market. Regional areas like Bunbury and Mandurah offer even more affordable options, with good infrastructure and lifestyle amenities. The cost of living in Western Australia is also moderate, with lower transportation and food costs compared to the eastern states.
Western Australia is a great choice for singles and couples looking for a city lifestyle without the high costs of Sydney or Melbourne, as well as for families seeking affordable suburban living.
Fourth – South Australia (SA)
South Australia ranks as the second most affordable state for property buyers, with Adelaide offering a balance of urban living and affordability.
- Affordability Score: 8/10
- Median House Price: $760,000
- Price Growth (Annual): 6%
- Cost of Living: 7.5/10
South Australia has a moderate median house price, particularly in Adelaide, where properties are still within reach for many buyers. The state offers a good mix of urban and suburban options, with relatively low property taxes and a strong job market in sectors like healthcare, education, and manufacturing.
Adelaide, with a median house price of $800,000, provides a cost-effective alternative to the more expensive eastern capitals. The city’s housing market has seen a steady 6% annual growth, suggesting a stable investment. The cost of living is also favourable, with affordable public transport and utility costs. Regional areas like Mount Gambier and the Barossa Valley are even more affordable, offering a peaceful lifestyle with excellent amenities.
South Australia is well-suited for young families and professionals who are looking for a balanced lifestyle with access to both urban conveniences and natural beauty, all at a reasonable cost.
Fifth – Queensland (QLD)
Queensland offers a diverse range of affordable housing options, particularly in regional areas, making it the third most affordable state.
- Affordability Score: 7.5/10
- Median House Price: $850,000
- Price Growth (Annual): 8%
- Cost of Living: 7/10
Queensland’s housing market is diverse, with affordable options both in Brisbane and in regional areas like Toowoomba and the Sunshine Coast. The state’s relatively low median house price, combined with a strong economy and job growth in sectors like tourism, healthcare, and construction, makes it an attractive option.
In Brisbane, the median house price of $920,000 remains competitive compared to Sydney and Melbourne. Regional areas are even more affordable, with many offering great lifestyle opportunities at a fraction of the cost of capital cities. The state has seen an 8% annual growth in house prices, driven by demand from interstate migrants. Additionally, Queensland’s cost of living is reasonable, with lower costs for utilities and transportation compared to the southern states.
Queensland is ideal for those seeking a warmer climate, whether they’re young professionals, retirees, or families looking for affordable living options with a high quality of life.
Sixth – Victoria (VIC)
Victoria is more expensive than the previously mentioned states but still offers relatively affordable options outside of Melbourne.
- Affordability Score: 6/10
- Median House Price: $914,000
- Price Growth (Annual): 8%
- Cost of Living: 6.5/10
While Melbourne’s property market is known for its high prices, Victoria as a whole offers affordable options, particularly in regional areas like Geelong and Ballarat. The state’s economy is diverse, with strong job markets in education, technology, and the arts.
Melbourne’s median house price of $940,000 is higher than in other capitals, but regional Victoria offers more affordable alternatives. Areas like Geelong, with its growing economy and proximity to Melbourne, have become increasingly popular for those seeking affordability without sacrificing lifestyle. The state’s property market has seen an 8% annual growth, indicating strong demand. However, the cost of living in Victoria is higher than in some other states, particularly in Melbourne.
Victoria is best suited for those who are drawn to cultural activities and urban living, particularly professionals who can afford the slightly higher cost of living in exchange for the lifestyle benefits of living in or near Melbourne.
Seventh – Australian Capital Territory (ACT)
The ACT, centred around Canberra, is one of the more expensive areas, but it offers excellent job opportunities and a high standard of living.
- Affordability Score: 5.5/10
- Median House Price: $950,000
- Price Growth (Annual): 9%
- Cost of Living: 7/10
The ACT is known for its strong job market, particularly in government and public services, which supports a higher median house price. However, Canberra remains more affordable than Sydney and Melbourne, with a growing property market driven by stable employment.
With a median house price of $972,000, Canberra is not the cheapest option, but its robust job market and high quality of life make it a good choice for those who can afford it. The city has experienced a 9% annual growth in property prices, reflecting strong demand. The cost of living is moderate, with higher expenses in areas like rent and dining out, but lower costs for utilities and transport.
The ACT is best for professionals, particularly those in government or public services, who are looking for a high standard of living with excellent job security and amenities.
Eighth – New South Wales (NSW)
New South Wales is one of the most expensive states to buy property, with Sydney’s high prices pushing the state up in the rankings.
- Affordability Score: 4/10
- Median House Price: $1,200,000
- Price Growth (Annual): 10%
- Cost of Living: 5.5/10
New South Wales, particularly Sydney, is known for its high property prices. However, regional areas like Newcastle and Wollongong offer more affordable alternatives while still providing access to the amenities and job opportunities of the state’s capital.
Sydney’s median house price of over $1,400,000 reflects the strong demand and limited supply in the city. The property market has seen a 10% annual growth, indicating sustained demand. Regional areas such as Newcastle, with a median price of around $850,000, offer a more affordable option with good access to Sydney. The cost of living in New South Wales is high, with significant expenses in housing, utilities, and transportation.
New South Wales is best suited for high-income professionals and families who prioritise living in Australia’s most populous state, despite the higher costs associated with it.
Research: A Blend of Data and Local Insights
To compile the rankings and recommendations for this article, I relied on a combination of data analysis and first-hand experiences gathered from visiting the suburbs and states across Australia. The data was primarily sourced from reputable property databases such as CoreLogic and the Australian Bureau of Statistics (ABS), which provided insights into median house prices, growth rates, and cost of living factors. These figures were then cross-referenced with local council reports and real estate publications like Domain and Realestate.com.au to ensure accuracy and relevance.
While data provides a solid foundation, my visits to these locations allowed me to immerse myself in the local culture, speaking with residents, business owners, and real estate agents to understand what truly makes each suburb unique. In Hobart, for instance, conversations at Jackman & McRoss in Battery Point revealed the community’s appeal to both longtime locals and new residents. In South Australia, dining at The Moseley Bar & Kitchen in Glenelg showcased Adelaide’s vibrant and welcoming atmosphere. Similarly, in Queensland, chatting with locals at Sea Salt and Vine in Redcliffe highlighted the area’s blend of affordability and quality of life. These firsthand experiences, combined with property data, were essential in accurately ranking and recommending each suburb.
Key Considerations for all Home Buyers
When deciding where to buy a home in Australia, it’s essential to consider several key factors:
- Affordability: Ensure the median house price in your chosen location aligns with your budget. This is crucial given the current climate of rising interest rates and stagnant wage growth, which can place financial strain on homeowners.
- Job Market and Economic Stability: Opt for regions with strong and diverse economies, such as Melbourne’s tech and education sectors or Brisbane’s growing healthcare industry. A stable job market offers better employment opportunities and long-term financial security.
- Quality of Local Amenities and Infrastructure: Proximity to schools, public transport, and healthcare services not only improves your daily life but also enhances the property’s value and attractiveness to future buyers, protecting your investment.
- Community and Lifestyle: Choose a suburb that matches your lifestyle preferences, whether it’s a vibrant urban environment or a peaceful regional town. Areas like Hobart’s Battery Point or Adelaide’s Glenelg provide both affordability and a strong sense of community, contributing to a fulfilling living experience.
Considering these factors will help you make a well-rounded and satisfying choice when purchasing your new home.
In conclusion
The journey through Australia’s states and territories reveals a diverse range of affordable living options, each with its own unique appeal and lifestyle offerings, including:
- Northern Territory, despite its higher median house price in Darwin, offers unique and more affordable options outside of the capital. These are complimented by great lifestyle experiences and strong economic opportunities, particularly in industries like mining and tourism.
- Tasmania offers affordable living in Australia, with low median house prices and a tranquil lifestyle, making it a top choice for many buyers.
- South Australia provides a balanced mix of affordability and urban amenities, especially in Adelaide, which is ideal for those seeking both city life and cost-effective housing.
- Queensland stands out for its warm climate and diverse range of affordable housing options, particularly in regional areas like Redcliffe and Toowoomba.
- Western Australia presents affordable living, especially in Perth, supported by a strong economy and stable housing demand.
- Victoria offers competitive options in regional areas despite Melbourne’s higher prices, making it a viable choice for those looking for a blend of urban and rural living.
- Australian Capital Territory delivers excellent job opportunities and a high standard of living, albeit with higher median house prices, particularly in Canberra.
- New South Wales offers higher median house prices but compensates with a vibrant economy and diverse lifestyle opportunities, making it an appealing choice for many buyers.
Each state and territory provides distinct advantages, depending on your financial situation and lifestyle preferences. If you need assistance navigating the property market to find the perfect home, consider using a professional residential buyer’s agent for expert guidance tailored to your needs.
Where is best to buy a house in Australia?
You will find my cheapest suburbs to live listed here…..Many home buyers gravitate toward capital cities like Melbourne, Sydney, Brisbane, Adelaide, Canberra, Hobart, Darwin and Perth……..
But there are also excellent choices in coastal and regional areas worth considering. These too can be found here.