Across Brisbane, it was cheaper to buy than rent in just 2.2% of suburbs in February 2023 compared to 21.8% of suburbs in February 2022.
In some cities, it’s cheaper to rent than buy in every suburb, including the ACT, Melbourne and Sydney, reports CoreLogic.
“Despite a double-digit surge in rents nationally, exacerbated by a shortage of rental properties, record levels of net overseas migration and more people returning to major cities for work and studies, the proportion of suburbs where it’s cheaper to rent than buy has increased exponentially in the past year,” said CoreLogic Research Director Tim Lawless said.
“There is no doubt the cost to service a mortgage compared to rent is keeping people in rental accommodation, adding to the extreme pressure on rental demand at a time when supply levels have not responded.
“While many tenants might see home ownership as a way of breaking out of the rent cycle, it’s just not possible for many because the cost to service a mortgage has become even more onerous in the past year with the increase in repayments outstripping the increase in rents by some margin.”
That news might seem depressing if you want to break in to the property market but remember this is all based on median values. So buying in a more affordable suburb, or buying a unit or townhouse, could still be a money smart move for you compared to renting.
See an independent mortgage broker or get some independent financial advice if you want to crunch the numbers on your own path to home ownership.
Looking to buy or rent? View our current listings for sale or check our listings for rent.