Mortgage repayments are now cheaper than rent in some Australian suburbs. Is yours among them?
News Source
β’Fri, 16 Oct 2026 23:00:15 GMT
π° What Happened
New analysis shows mortgage repayments are now cheaper than rent in some Australian suburbs. Guardian Australia looked at Cotality data on rents and home prices.
Median rent rose 5.5% over the year to September, reaching $713 a week. Over the same time, the median property price stayed flat after six months of small falls.
In one in 10 suburbs and towns, repayments are less than $200 a week more than rent for a typical home. In some places they are lower. Rents in inner Melbourne, suburban Canberra and Darwin are close to matching weekly loan repayments.
π The Backstory
Home prices climbed fast during the pandemic, then interest rates rose. That made loans much more expensive and pushed prices down a little. Rents kept climbing because fewer homes were free and more people needed them.
That gap is now closing in some areas. A typical Melbourne apartment rented for $628 a week after a 4.8% rise over the year. For tenants with a deposit and steady income, buying can now cost about the same as renting.
π― Why It Matters
For renters, this is a rare chance to compare. A mortgage may now cost the same as rent, though saving a deposit is still the hard part.
New analysis shows mortgage repayments are now cheaper than rent in some Australian suburbs. Guardian Australia looked at Cotality data on rents and home prices.
Median rent rose 5.5% over the year to September, reaching $713 a week. Over the same time, the median property price stayed flat after six months of small falls.
In one in 10 suburbs and towns, repayments are less than $200 a week more than rent for a typical home. In some places they are lower. Rents in inner Melbourne, suburban Canberra and Darwin are close to matching weekly loan repayments.
Home prices climbed fast during the pandemic, then interest rates rose. That made loans much more expensive and pushed prices down a little. Rents kept climbing because fewer homes were free and more people needed them.
That gap is now closing in some areas. A typical Melbourne apartment rented for $628 a week after a 4.8% rise over the year. For tenants with a deposit and steady income, buying can now cost about the same as renting.
For renters, this is a rare chance to compare. A mortgage may now cost the same as rent, though saving a deposit is still the hard part.