Question: What is the Cheapest State to Buy a House in Australia in 2024?
When it comes to finding the Cheapest State to Buy a House in Australia, the choice often comes down to South Australia or Tasmania. While specific market trends and regional factors can cause variations, these two states consistently rank as the most affordable in the country.
Answer: South Australia
South Australia offers a compelling mix of affordability and liveability, making it a top choice for budget-conscious buyers.
- Affordable Capital City: Adelaide, South Australia’s capital, boasts significantly lower median house prices compared to other major cities like Sydney, Melbourne, and Brisbane. This affordability extends across suburbs, making it easier for buyers to find budget-friendly options.
- Regional Affordability: Beyond Adelaide, South Australia’s regional towns, such as Mount Gambier and Port Augusta, stand out for their low property prices. These areas offer great value for money, particularly for first-home buyers or investors.
- Steady Market Growth: Unlike the property booms seen in New South Wales and Victoria, South Australia’s property market grows at a steadier, more sustainable pace. This slower growth helps keep prices accessible while still offering long-term investment potential.
Why is South Australia, the Cheapest State in AUS?
Several key factors contribute to the affordability of South Australia:
- Lower Population Density: South Australia ( with 1.8 million people) has significantly smaller populations compared to high-demand states like New South Wales (8.3 million) and Victoria (6.7 million). A smaller population directly correlates with reduced demand for housing, which lowers competition in the real estate market. (Australian Bureau of Statistics, ABS).
- Economic Factors: Slower economic growth, fewer job opportunities in certain industries, and lower average incomes in South Australia, reduces housing demand, which helps to keep prices down. For example, South Australia has a long history of reliance on manufacturing and agriculture. (Deloitte Access Economics).
- Lower Average Incomes: The average household income in South Australia and Tasmania is lower than the national average. In 2023: The median weekly income for South Australia was $1,374, compared to $1,780 in New South Wales. Lower incomes limit potential buyers’ purchasing power, which directly impacts house prices (ABS Household Income Survey).
- Lifestyle Preferences: Many Australians gravitate towards larger cities like Sydney, Melbourne, and Brisbane for their job markets, cultural attractions, and amenities. This preference shifts demand—and higher prices—toward these other major cities, leaving smaller markets such as Adelaide and the state of South Australia, with more affordable property options. (Grattan Institute).
- Limited Amenities in Smaller States: While Adelaide are charming and liveable cities, they do not match the scale or variety of services, employment opportunities, and entertainment options available in larger cities. As a result, some buyers, particularly younger professionals and families, choose to move to more populous states, reducing housing demand in South Australia (Grattan Institute).
- Migration Patterns: Historically, interstate migration trends show people moving from these smaller states, to more dynamic job markets in Sydney, Melbourne, and Brisbane. Although South Australia saw a temporary influx during the pandemic due to remote work flexibility, its long-term migration patterns tend to favour outflows, reducing housing demand (Grattan Institute).
- Less Investment Activity: South Australia attract fewer large-scale investors and developers compared to New South Wales or Victoria, keeping house prices relatively stagnant (Deloitte Access Economics).
Opportunities for Buyers
If you’re in the market for a budget-friendly property, anything in both the city of Adelaide and the wider state of South Australia, present fantastic opportunities. Regional towns in these states, in particular, provide great value for homeownership or investment.
By focusing on these affordable markets, you can stretch your budget further while enjoying a high quality of life. Whether you’re seeking the charm of Adelaide, the potential for long-term investment, these two states stand out as the Cheapest Places to Buy a House in Australia, for 2024.
Should you require help in steering through the competitive South Australian property market, think about engaging a professional residential buyer’s agent. They are equipped to provide tailored advice, ranging from locating the ideal suburb to acquiring your dream home.
