New data shows buying an affordable home is becoming increasingly difficult, but there are still hundreds of suburbs with a median house price of less than $500,000.
PropTrack data has revealed 402 suburbs across the country where buyers can still snap up a house or unit for less than $500,000, and you don't necessarily need to venture too far from the city centre to find one.
Given the median house price now sits at $996,000 nationally, and $730,000 for a median unit according to the latest PropTrack Home Price Index, many buyers are being forced to look further afield or downsize if they want to get into the property market, particularly as rising interest rates shave thousands off a typical buyer's borrowing capacity.
That doesn’t mean those with a budget of less than $500,000 will be left out in the cold, though. Buyers just need to search far and wide.
At the extreme end, remote locations such as Coober Pedy offer freestanding homes for less than $100,000.
But for most buyers seeking a home in a capital city or diverse regional hub, there are still options in every state and territory.
Jump ahead to see:
Victoria
Sluggish price growth in recent years has seen Melbourne slip down the rankings from the second most expensive capital city, to the sixth, and for buyers, that means there are still several options for buyers seeking an apartment within easy reach of the CBD for less than $500,000.
Suburbs including Kensington, Fairfield and Footscray offer great proximity to the CBD, amenities and lifestyle benefits, with a median unit price of around $450,000-$500,000. A little further out, buyers could look to Box Hill, Sunshine and Broadmeadows.
112 Wilson Street in Colac is on the market for $445,000 - $475,000. Picture: realestate.com.au
Buyers will need to look outside the capital for a freestanding home. In Colac you could secure a well-presented three-bedroom home for less than $475,000, while in the alpine region of Icy Creek, 25-minutes from Mt Baw Baw, skiers can get a charming weekender for less than $500,000.
For something a little different, Vince di Grazia of Chenz Realty holds a listing priced between $460,000 - $500,000 within Timboon Mill, a group of villas on 144 acres. This dwelling is set on 729sqm.
Known as 'Hidden Hamlet', buyers can snap up a villa within 144 acres of natural bushland and cleared open green pastures. Picture: realestate.com.au
The “cluster title” includes 15 titles with eight homes, without fencing. Prospective buyers secure their blocks, “The rest of the farm is theirs to use but it’s under body corporate management," he said.
43 Manns Beach Road is on the market for $450,000. Picture: realestate.com.au
Searching for something affordable by the water? Try Gippsland’s Manns Beach, where you’ll find a renovated two-bedroom retreat with stunning kitchen for $450,000.
New South Wales
Homes under $500,000 are uncommon in NSW, but they can be found. In fact, according to PropTrack there are still 77 suburbs across the state with a median house or unit price of less than half a million dollars.
Within Greater Sydney, units in the western suburbs of Mount Druitt and Fairfield are still selling for around $450,000.
Buyers can find affordable units in Sydney suburbs such as Fairfield or Mount Druitt. Picture: realestate.com.au
Apartments can be snapped up in major regional centres including Wagga Wagga, Bathurst and Nowra for around $450,000-$500,000.
For a freestanding home, try Cowra, Young or Cootamundra. This centrally located house in Gunnedah is listed for just $345,000, or this two storey house in Wingham comes fully tenanted.
28 Tempest Street, Gunnedah is on the market for $345,000. Picture: realestate.com.au
Tamworth was recently nominated in the realestate.com.au Hot 100 for 2026, and there are several suburbs within the regional city with a median home price of less than $500,000, including freestanding houses in West Tamworth, and units in East and South Tamworth - but buyers may need to be quick, with local agents reporting demand is outpacing supply.
Take this property in Larnook, just over an hour inland from Byron Bay. The rustic shack is part of Billen Cliffs village, a community comprising 115 two-acre parcels of land.
This strata-titled rustic shack sits just over an hour away from Byron Bay. Picture: realestate.com.au
This one is on 9636m2, nestled within the common land that is also home to a community centre and hall. It won’t be for everyone, but its remote location and price tag of $399,000 will likely draw those priced out of other towns, searching for an alternative lifestyle.
Queensland
The sunshine state is now home to Australia's second most expensive real estate market, with a typical home costing $1,046,000 in Brisbane and $810,000 in regional Queensland.
But there are still plenty of great options out there, with 92 suburbs still priced below $500,000.
Take Russell Island, an idyllic spot near North Stradbroke Island. It’s accessible by ferry and vehicle barge. It has a median house price of $475,000, and for just $389,950, you can secure 900sqm of waterfront residential land.
This waterfront block of land on Russell Island is listed for just $389,950. Picture: realestate.com.au
Agent Chris McGregor of Bay Island Property said buyers from Melbourne, Sydney and Brisbane were selling their million dollar homes and securing these properties in cash.
“They’re living here mortgage-free,” he said and added that they were drawn to the ease of being 40-minutes from Brisbane once on the mainland.
There are plenty local island amenities too, including supermarkets, medical services and cafes. You can also find properties with established homes for under $500,000 on Russell Island too.
South Australia
Although prices in Adelaide and surrounding suburbs have been on the rise in recent years, regional locations provide buyers with some optimism.
Millicent, 30-minutes from Mount Gambier has a thriving community and easy access to beautiful beaches. Here, a neatly updated three-bedroom property on 1,403sqm is priced between $385,000 and $425,000.
24 Palmer Street, Port Pirie is on the market for $425,000. Picture: realestate.com.au
Over in Port Pirie, about 2.5-hours north of Adelaide, you can find a four-bedroom heritage sandstone home that’s close to the historic town centre for $425,000.
Tasmania
As one of the most affordable of all the states and territories, Tasmania remains an attractive location to purchase property for just a few hundred thousand dollars.
According to PropTrack, there are just 21 suburbs in Tasmania with a median house or unit price of less than $500,000. Though, it's worth noting that many small towns and villages record very few property transactions each year, and so they may not have been captured in the data.
Units in the city of Burnie can be purchased for less than $500,000. Picture: realestate.com.au
Freestanding homes in the historic mining town of Queenstown can be snapped up for just $210,000, or Upper Burnie for $475,000.
The city of Devonport has a median unit price of $410,000, and while freestanding homes can be found for under $500,000, they often require additional refurbishments.
West coast towns such as Strahan provide buyers with excellent bang for buck. Rodney Triffett of Harcourts said that pricing was a big drawcard.
“People come to these areas because they’re locked out elsewhere,” he said.
Nothing to do: This renovated four bedroom home at 1/7 Meredith Street, Strahan is on the market for $375,000. Picture: realestate.com.au
He’s selling a renovated four-bedroom residence just streets from the water for $375,000. It’s attractive for owner-occupiers or investors who can achieve rental income of $490 per week.
He said that despite the affordable prices, these properties are often secured by mainland buyers who want to “get away from the rat race” and can therefore take some time to sell.
ACT
Apartments are your best bet if you’re seeking a dwelling priced at sub $500,000 in Canberra, in fact, there are just five suburbs in total with a median unit price below half a million dollars.
According to PropTrack, Curtin (median unit price $350,000), Lyons ($364,000), Gungahlin ($425,000), Belconnen ($481,000) and Franklin ($490,000) are the most affordable suburbs in the nation's capital.
For buyers in Canberra, a budget of $500,000 won't get you a freestanding house. Picture: realestate.com.au
But, that doesn't mean there are no other options for buyers on a tight budget. In the suburb of Phillip, you could secure a one-bedroom unit for $369,000.
In the city centre, $475,000 gives prospective buyers access to an apartment with views overlooking Lake Burley Griffin, spacious living area with a study nook and access to universities and transport.
Western Australia
With prices soaring in Western Australia in recent years, affordable suburbs are disappearing quickly.
But according to PropTrack, there are still 32 suburbs with a median house or unit price below $500,000.
17 Dugan Street, Kalgoorlie recently sold for $465,000. Picture: realestate.com.au/sold
Buyers can find units in regional hubs like Geraldton or Cable Beach in Broome, while freestanding homes are largely limited to mining towns like Kambalda and Kalgoorlie.
Northern Territory
The Northern Territory remains Australia's most affordable state or territory, though with home prices in the Darwin surging 16.2% over the past 12 months, buyers are being forced to downsize to buy a home in the capital city.
Rapid Creek in Darwin was nominated in this year's realestate.com.au Hot 100. Picture: realestate.com.au
One of the city's most desireable suburbs, Fannie Bay, has a median unit price of $486,500, or buyers can look in nearby Darwin City, Coconut Grove, Nightcliff or Rapid Creek.
For a freestanding house, Berrimah has a median house price of $357,900, or buyers can look outside the capital to locations such as Katherine East or Gillen in Alice Springs.
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