Buying a house in Melbourne may seem challenging, but for buyers who know where to look, there are still opportunities to enter the market.
Recent data suggests that a household income of at least $200,000 is required to afford a median-priced house in 231 out of 443 Melbourne suburbs.
Even the city’s overall median house price of $860,000 demands an income of $175,000 a year, assuming a 20 per cent deposit and a 30-year loan at the current average variable interest rate of 6.23.
In suburbs like Melbourne’s inner south and inner east, single buyers need an annual income of at least $239,000 to afford a house with a 20 per cent deposit.
More Affordable Options in Melbourne’s Growth Areas
While median house prices in some inner-city suburbs require a high income, Melbourne’s outer suburbs continue to offer affordable options—especially for first-home buyers and growing families.
Areas like Melton, Melton South, and Kurunjang offer some of the lowest entry points, with median house prices between $470,000 and $523,000.
Under standard loan conditions, a household income of approximately $96,000 to $107,000 is enough to secure a home in these locations.
Other affordable areas include Melton West and Coolaroo, where buyers typically need an income between $108,000 and $110,000.
These areas continue to attract homebuyers due to their family-friendly communities, ongoing infrastructure development, and proximity to new schools, parks, and shopping precincts.
Many new estates also offer house and land packages designed for a range of budgets, making it easier to build a home without the competition of the established housing market.
How Buyers Are Making Homeownership Work
With property prices rising faster than wages and rising interest rates affecting borrowing capacity, many buyers are adjusting their expectations and exploring alternative pathways to enter the market:
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Considering house and land packages – New developments in Melbourne’s outer suburbs offer more affordability and modern amenities compared to established inner-city homes.
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Rentvesting – Some buyers are purchasing in affordable areas while continuing to rent in their preferred location. This approach allows buyers to build equity in a property while maintaining flexibility in where they live.
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Leveraging government incentives – First-home buyers may benefit from stamp duty concessions and grants for new builds, which reduce upfront costs. Government incentives, such as Victoria’s stamp duty concessions for properties under $600,000 and the First Home Owner Grant, continue to provide financial relief for buyers entering the market. Many home builders also offer incentives on house and land packages, further reducing the upfront costs of building a new home.
Opportunities for First-Home Buyers
While Melbourne’s property market has become more competitive, homeownership is still within reach for buyers willing to explore different locations and strategies.
House and land packages in Melbourne’s outer suburbs offer a practical way to enter the market with brand-new homes designed to suit various budgets.
With continued investment in infrastructure and community amenities, these areas remain attractive options for first-home buyers and families looking to secure their future.
Publisher Website: www.homeshelf.com.au