Across Australia 198 suburbs are now cheaper to buy a house than rent, compared to just 86 suburbs three months earlier.
Brisbane tops the capital city list boasting 69 suburbs where it costs you more to rent a house than buy it, and 54 suburbs where your weekly unit rent exceeds your mortgage repayment.
The figures are based on Domain data comparing the June 2019 and September 2019 quarters.
“The past few months have seen a halving of the cash rate, cheaper mortgage rates, and in some cities falling prices. That combination means that in a lot of areas, both the principal component and the interest costs of a mortgage are reduced,” Domain research analyst Eliza Owen said.
“Meanwhile, some areas are seeing tighter rental markets. So that combination of rising rents and lower housing purchase costs means that there are more suburbs where it’s cheaper to pay off a mortgage, than pay for the typical asking rent.”
If you’re crunching your own numbers, you’ll be interested to know the stats are based on median house and unit prices, and weekly mortgage repayments are based on a 20 per cent deposit and do not include purchasing expenses like stamp duty.
Check out the figures from around Australia.
Number of suburbs where it’s cheaper to buy a house than rent one
- Brisbane, 69
- Adelaide, 55
- Perth, 53
- Hobart, 9
- Darwin, 6
- Canberra, 5
- Sydney, 1
- Melbourne, 0
- Australia, 198
Number of suburbs where it’s cheaper to buy a unit than rent one
- Brisbane, 54
- Melbourne, 19
- Canberra, 18
- Perth, 14
- Adelaide, 10
- Sydney, 7
- Darwin, 5
- Hobart, 0
- Australia, 127