Melbourne Property Becomes Relatively More Affordable, Ending Exodus

Melbourne is emerging as one of Australia’s more affordable major housing markets, with both rents and house prices sitting below the levels seen in several other mainland capitals.

Latest Cotality-based figures put Melbourne’s median house rent at around $668 per week, compared with a capital-city median of about $777. Sydney remains far more expensive, with median house rents around $885 per week. Melbourne’s median house value is also about $915,100, making it the cheapest mainland state capital for houses on this measure.

This relative affordability could become an important advantage for Melbourne, particularly if households begin reconsidering where they can achieve better value for money.

For Melbourne’s western growth corridor, that could translate into stronger demand from first-home buyers, families and renters looking for newer housing at more manageable prices.

The west already offers a broad mix of established homes, townhouses, house-and-land packages and new estates, giving buyers more flexibility across different price points.

Investors may also be attracted by the combination of lower entry prices and ongoing rental demand, particularly in suburbs supported by population growth, transport improvements, schools and employment opportunities.

However, affordability does not automatically guarantee strong capital growth. Buyers should still assess local supply, infrastructure, vacancy rates and the pace of new development before making decisions.

If Melbourne continues to remain comparatively cheaper than Sydney, Brisbane, Perth and Adelaide, that price gap could gradually support migration and buyer demand.

For Melbourne’s western growth corridor, the result may be a more balanced market where softer prices attract new buyers while rental demand helps support investor interest.

Overall, Melbourne’s relative affordability could become one of its strongest long-term advantages. For buyers and investors in the west, the current market may provide opportunities to enter at lower prices while positioning for future demand as the city’s affordability gap with other capitals widens.