Revealed: 300 suburbs where buying is cheaper than renting – realestate.com.au

In about 300 Queensland suburbs it is up to $300 a week cheaper to own a home than to rent, despite the state’s average rent rising to a record high.

As first home buyers rush to take advantage of the government’s stimulus, an exclusive new analysis reveals that there are 84 suburbs where it is cheaper to pay off a mortgage on a house than to rent one – but they are all in rural or regional areas.

However, there are more options for buyers looking for apartments, with 216 suburbs (18 per cent of all suburbs analysed) where the average mortgage repayment is below the average rental price, including eight in South East Queensland.

According to analysis by comparison site Finder, they include the unit-heavy, inner-Brisbane suburbs of South Brisbane, Bowen Hills, Spring Hill and Fortitude Valley.

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The central Queensland coal mining town of Moranbah is the cheapest place in the state to own a home compared to renting, with savings of around $300 per week for both houses and units.

The Mackay and Cairns regions also have some suburbs where the cost of owning a home is cheaper than renting, such as Mackay Harbour, Blacks Beach, Mossman and Port Douglas.

This three-bedroom house at 23 Flinders Dr, Moranbah, is for sale at $448,000.

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The analysis takes into account a standard deposit of 20 percent and a loan term of 30 years at a rate of 5.52 percent.

The Help To Buy scheme only requires a 5 per cent deposit for first home buyers, but that means a larger loan size and higher monthly repayments.

The number of neighborhoods where it is cheaper to pay off a mortgage than rent with a 5 percent deposit then drops to less than half.

An apartment in this complex on Wickham Terrace in Spring Hill is for sale at an offer of more than $700,000.

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Finder head of consumer research Graham Cooke said the data showed renting remained the cheaper option in most suburbs.

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“Even in the rare cases where the maths are reversed, the calculations don’t take into account the deposit you need to save, stamp duty and all the other costs involved in buying a house,” Mr Cooke said.

“The reality is that for most young Australians, especially those in the capital cities, the dream of home ownership is being squeezed at both ends. Negative gearing means the gap between house prices and rental costs will persist for the foreseeable future.”

Graham Cooke, head of consumer research at Finder.com.au.

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It comes as new figures from PropTrack show average residential rent in Brisbane and regional Queensland is now at a record high of $670 per week, or almost $35,000 per year.

Home loan mortgage adviser Sheng Ye said rising rents are prompting many tenants to “seriously consider buying” earlier than planned.

“Rent increases are pushing people out of their favorite suburbs and into areas further from the city,” Ye said.

“In many cases, tenants are wondering whether buying – even if it is further away – might be the better long-term option.”

This condo at 705/24 Brewers St, Bowen Hills is on the market for offers in the low to mid $700,000s.

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Mr Ye said he noticed more tenants who had previously postponed entering the market and are now actively looking for suitable properties.

“That tells me the demand hasn’t gone away,” he said. “People are still looking to buy, and I expect 2026 to be an active year for both buyers and sellers, even as affordability continues to determine where and how people enter the market.”

Vervé property buyer agent Lisa Evans said she was advising her clients not to “rent and wait” for a market correction.

This four-bedroom home at 5 Sunbird Close, Port Douglas, is for sale with offers in excess of $1.145 million.

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“We are witnessing a fundamental shift where the cost of rent has become a perpetual ‘tax’ on future wealth,” Ms Evans said.

“In top-adjacent areas like Carina Heights, the gap has narrowed to the point of no return. If you pay $685 a week in rent, you’re essentially paying someone else’s debt on an asset that’s increasing in value by more than 10 percent annually.

“As a buyer’s agent, my focus is not only on weekly repayments, but also on helping clients secure their ‘ticket’ into a city where the imbalance between supply and demand is now a permanent part of the landscape.”

Even after taking into account “holding costs” such as rates and corporate entities, Ms Evans said the net worth of a homeowner in some Brisbane suburbs was growing six figures faster than that of a renter.

This two-bedroom apartment at 8 Church St, Fortitude Valley, is for sale for $850,000.

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“In a market with a 0.7 percent vacancy rate, ownership is not just a lifestyle choice, it is a strategic hedge against a rental market that is effectively ‘inflation-proofing’ landlords while simultaneously pricing out tenants,” she said.

But Cooke urged caution. He said low deposit schemes were touted as a solution to help first home buyers get their foot on the property ladder, but they also had a hidden sting: borrowing more could mean higher interest costs.

“We have reached the point where the enormous cost of entry, combined with the rising cost of debt, is putting the property ladder largely out of reach for many Australians,” he said.

“Anyone who has already purchased a home should see if they can get a better deal on their mortgage. Even shaving half a percentage point off your mortgage can save you thousands of dollars.”