*Updated 18 December 2023
Knowing the cheapest suburbs in Melbourne will give you an idea of where to pitch your tent, especially if you’re on a budget.
In 2023, Melbourne’s real estate market demonstrated remarkable resilience despite facing numerous challenges. The city, now Australia’s largest with a population of approximately 5.8 million, has seen a consistent rise in housing prices over the last 10 months, up by 4.5% since January 2023. This rebound follows a period of decline where housing values fell by 7.9% from their peak in March 2022.
Melbourne Housing Market Overview
| Statistic | Value |
|---|---|
| Median House Price | $943,725 |
| Median Unit Price | $610,490 |
| Annual Population Growth | +500,000 (2023-2027 forecast) |
| Major Industries | Finance, Technology, Healthcare |
Given these numbers, you’re not wrong for looking up the cheapest suburbs in Melbourne for rent. While Melbourne has one of the cheapest rent, it doesn’t mean it’s that affordable.
Based on data, research, and views from experts, Melbourne property managers, and analysts, we have compiled a guide to cheap suburbs in Melbourne for 2024.
Current Market Trends and Statistics
First let’s take a look at how Melbourne is performing.
The CoreLogic data from November 2023 indicates nuanced trends in Melbourne’s real estate market. While there has been a slight drop in house prices (-0.1% in November), there’s a general upward trajectory with month-on-month increases in median property prices.
Key Market Trends
- Median Property Prices: As of December 2023, the median price for all dwellings in Melbourne was $779,914.
- Rental Market Dynamics: Despite the challenges, rental yields have improved in Melbourne, reflecting the city’s strong property values.
Top 8 Cheapest Suburbs for Houses in Melbourne
Methodology
The suburbs included in this guide were determined based on the following factors:
- Median Price Data: Suburbs were initially identified as potentially affordable using median house and unit prices for 2023 as sourced from reliable real estate platforms (e.g., [invalid URL removed].au, Domain, CoreLogic).
- Growth Trends: Suburbs showing stable or moderate property value growth over the last 12 months were prioritized. This suggests relative affordability compared to areas with rapidly increasing prices.
- Distance to CBD: Suburbs within a reasonable commuting distance of Melbourne’s CBD were considered, balancing affordability and accessibility.
- Rental Market Analysis: Areas with comparatively lower median rental prices and reasonable rental yields were included, signifying potential for affordability for renters.
Important Note: Property markets can fluctuate. It is always recommended that potential renters and buyers conduct their own up-to-date research and consult with real estate professionals to make informed decisions based on their individual needs and budget.
Let’s discover Melbourne’s most affordable suburbs for house purchases in 2023/ 2024.
| Suburb | Median House Price | Notable Features |
|---|---|---|
| Coolaroo | $500,000 | Close to CBD, cultural heritage |
| Dallas | $510,000 | Near Hume Highway, affordability |
| Melton | $525,000 | Access to Daylesford, family-friendly |
| Werribee | $614,000 | Werribee Zoo, lush green spaces |
| Tarneit | $645,000 | Popular among first-home buyers, green spaces |
| Hoppers Crossing | $620,000 | Proximity to Tarneit, affordable homes |
| Craigieburn | $663,000 | 45-min drive from CBD, developing area |
| Pakenham | $658,000 | Near Bunyip State Park, family-oriented |
These suburbs offer a unique blend of affordability, lifestyle, and investment potential, making them highly attractive for homebuyers and investors alike.
Top 6 Cheapest Suburbs for Units in Melbourne
These are the suburbs in Melbourne where you can find the best deals on units. From bustling city suburbs to quiet, family-friendly areas, these suburbs offer affordability without compromising on lifestyle and convenience
| Suburb | Median Unit Price | Distinguishing Characteristics |
|---|---|---|
| Melton | $359,000 | Family-friendly, suburban vibe |
| Werribee | $420,000 | Attractions like Werribee Zoo |
| Tarneit | $428,000 | Emerging suburb, modern amenities |
| Craigieburn | $427,000 | Growing suburb, good infrastructure |
| Pakenham | $470,000 | Scenic surroundings, relaxed lifestyle |
| Carlton | $480,000 | Vibrant cultural scene, urban living |
Cheapest Suburbs Within 10km of Melbourne CBD
Melbourne CBD units and Richmond (units) stand out as affordable options within close proximity to the CBD. These areas offer the convenience of city living with more accessible price points for units compared to houses.
| Suburb | Median Price for Units | Proximity to CBD | Vacancy Rate |
|---|---|---|---|
| Melbourne CBD | $430,000 | Within CBD | 2.1% |
| Richmond | $640,000 | < 10km | 0.7% |
Note: Both suburbs show a trend of decreasing vacancy rates and increasing rent, indicating growing demand in these areas.
A Closer Look at Some of the Cheapest Suburbs in Melbourne
Coolaroo
- Median House Price: $520,000
- Distance From The CBD: 26 minutes
Coolaroo is one of the cheapest suburbs to rent in Melbourne. Affordability is an enormous appeal to the neighbourhood, especially for first-time homebuyers and investors priced out of other areas.
As a result, Coolaroo, formerly considered “undervalued,” has been named Australia’s best-performing cheap neighbourhood.
Coolaroo’s position is 16.8 kilometres from the CBD, proximity to Melbourne Airport and key arterial routes, and enhanced infrastructure appeal to purchasers.
There is convenient access to public transportation, commercial centres, and all levels of schooling.
If you’re looking for cheap apartments for rent in the Melbourne CBD but can’t find the right property, you should consider this suburb instead.
Discover more properties for sale in Coolaroo VIC.
Tarneit
- Median House Price: $650,000
- Distance From The CBD: 36 minutes
Young families are drawn to the area’s educational opportunities. Tarneit has six primary and secondary schools to select from, allowing you to tailor education to your child’s requirements.
In addition, Tarneit is a short 30-50 minute journey to the city and the M1, making for a quick morning commute.
If you’re looking for 1 bedroom apartments for rent in Melbourne for cheap, definitely a great choice to consider amongst the cheapest suburbs in Melbourne.
Discover more properties for sale in Tarneit VIC.
Dallas
- Median House Price: $510,000
- Distance From The CBD: 30 minutes
Dallas is a Melbourne, Victoria, Australia suburb located 16 kilometres north of Melbourne’s central business area.
The City of Hume is its local government area. The typical home price in Dallas is $510,000 while the average unit price is $465,750.
In terms of rental returns, homes in Dallas rent for $348 per week with an annual rental yield of 3.7% and apartments rent for $360 per week with an annual rental yield of 3.6%.
Discover more properties for sale in Dallas VIC.
Melton
- Median House Price: $525,000
- Distance From The CBD: 30 minutes
If you are limited by budget, you can get affordable apartments for rent in Melbourne if you choose Melton. This suburb is 35 kilometres outside the city and should be on your radar.
Melton has the most affordable properties, with median property values of $500,000 (houses) and $362,000 (units).
The neighbourhood has its train station near the airport and has good schools.
As in most Melbourne suburbs, House prices in Melton surged sharply in 2022 but remain reasonable for many purchasers.
Discover more properties for sale in Melton VIC.
Hoppers Crossing
- Median House Price: $620,000
- Distance From The CBD: 42 minutes
Hoppers Crossing is 23 kilometres southwest of the capital’s central business sector. It is the administrative and most populated centre of the city.
The primary mode of transportation is by road, specifically motor vehicles. The Department of Transport has designated hoppers crossing as one of the most car-dependent areas in Greater Melbourne.
As a result, its citizens rely mainly on the city’s extensive network of busy highways.
Despite being an inner-city neighbourhood, hoppers crossing is one of Melbourne’s most important areas to invest in 2022, with an 8.9% increase in property values.
However, even for those looking to buy a home, this area has promise, with a 7.1% growth rate.
Discover more properties for sale in Hoppers Crossing VIC.
Related Articles
- Cheapest houses for sale in Sydney under $500,000
- The 8 best suburbs to invest in Brisbane
- The 8 best suburbs to invest in Melbourne 2022
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FAQ Section on The Cheapest Suburbs in Melbourne 2024
What are the other cheapest suburb to stay in Melbourne?
Coburg North and Ringwood East are also recognized as some of the most affordable suburbs for renting a room in Melbourne, with median weekly rents standing at $180.
Will house prices come down?
House prices in Melbourne are anticipated to continue rising in 2024, with an expected increase of approximately 3-4%, translating to an additional $90,000 to $120,000 on a $3 million property.
What is the least affordable suburb in Melbourne for renters?
Brighton East emerges as the least affordable suburb for renters in Melbourne, where residents allocate 38% of their household income towards rent.
What suburbs will boom in 2024 in Victoria?
Suburbs including Albion, Altona Meadows, Arden, and Ballarat East, among others, are poised for significant growth in 2024, making them areas to watch for potential property investment or residence.
