It’s cheaper to buy than rent over half the properties in Australia

Australia has enjoyed a record-breaking surge in house prices with the steepest increase in almost 18 years recorded in the first quarter of 2021 alone.

But a new REA Insights report reveals that despite the climbing prices, it’s still cheaper to buy than rent in nearly 57% of all the properties across Australia.

The results, however, differ by property type – just over half of houses will be cheaper to buy than rent over the next 10 years, but for units that jumps to 75%.

Meanwhile, on a suburban level, despite all the concerns and complaints about housing affordability or the lack of it, it is expected to be cheaper to buy a house and rent a house in 6 out of 10 suburbs around Australia over the next decade.

That figure jumps to more than 8 in 10 suburbs where it’s cheaper for buyers looking to buy an apartment rather than rent.

These findings suggest that rental growth will remain subdued, particularly outside Melbourne and Sydney.

The number of suburbs where it’s cheaper to buy than rent

In fact, buying conditions are particularly favorable outside of New South Wales and Victoria.

More than 80% of houses and almost all units outside of the most populous states are estimated to be cheaper to buy than rent over the same period as affordability continues to drive demand and strong regional price growth continues.

In the Northern Territory, for example, it’s cheaper to buy than rent 97.6% of houses and 100% of units.

Meanwhile, on the opposite end of the scale, it’s only cheaper to buy than rent in 41.3% and 42.2% of houses in New South Wales and Victoria.

For units, the figures are slightly higher at 69.1% and 67.6% for New South Wales and Victoria respectively.

Source: It’s cheaper to buy than rent over half the properties in Australia (propertyupdate.com.au)