Young Melbourne buyers are targeting growth suburbs like Craigieburn and Pakenham to get ahead in Melbourne’s tough housing market. Picture: Tony Gough
Millennials and Gen Z might have a tougher road to property ownership than their parents, but experts say there are still ways to trade up to even some of Melbourne’s wealthiest areas.
You just need to know where to look.
In Craigieburn, the 2025 median house price sits at $610,000 — six times the nation’s about $100,000 average annual wage.
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In Tarneit, the typical house costs $645,000, with other other suburbs offering a more affordable starting point including Wyndham Vale, $607,000, Pakenham, $590,000, Werribee, $610,000, and Frankston, $715,000.
And with access to infrastructure, lifestyle amenities and growing populations, there’s potential for those prices to grow.
Ray White Frankston agent George Devic said demand was strong in the Frankston area, particularly from younger buyers and investors.
“If you stay sub-$850,000, you’re seeing a lot of first-home buyers and both local and interstate investors in the market,” Mr Devic said.
“Buyers are active, and we’re seeing the whole suburb remain attractive, from entry-level homes to blue-chip pockets.”
PropTrack economist Eleanor Creagh said equity growth remains possible for buyers who choose wisely.
PropTrack senior economist Eleanor Creagh added that while buyers entering the market today were unlikely to see the same exponential gains as their parents, real estate was still a powerful long-term investment.
“Getting into the market remains a crucial first step, and with the right purchase in the right location, there’s certainly potential to build wealth over time,” Ms Creagh said.
First-home buyers are snapping up affordable properties in Melbourne’s outer suburbs to build long-term wealth. Photo: Wayne Taylor
Suburbs once overlooked are now hot property, as Gen Z and Millennials shift buying strategies. Picture: Jason Edwards
“Even if the journey looks different, the principle of long-term equity growth still holds true.”
The concept relies on a relatively affordable investment gaining value over a long period of time. If a person can acquire multiple homes it could eventually allow them to sell the group of more affordable residences to fund a home in a much pricier neighbourhood.
Buyer’s advocate Madeleine Roberts says young Aussies are using smart tactics like rentvesting to build wealth through property.
M R Advocacy director and buyers’ agent Madeleine Roberts said young Australians were finding new ways to build wealth, from rentvesting to buying in future lifestyle suburbs.
“I grew up in Rye, back then it was a sleepy beach town. Now it’s a million-dollar suburb,” Ms Roberts said.
“It shows how much potential lies in lifestyle-driven areas that were once overlooked.”
Rising demand in areas like Frankston is driven by investors and young buyers priced out of inner Melbourne. Picture: David Caird
Strategic property purchases in lifestyle suburbs are helping younger Australians get on the path to ownership. Photo – iStock
The buyer’s agent added that younger buyers were “more investment-minded” than previous generations.
“They know the dream home isn’t going to magically land in their lap,” she said.
“They’re using property as a wealth-building tool, it’s about being strategic from the start and understanding how to make the market work for them.”
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