Hot and cheap: Australia's most affordable suburbs for 2025

The Hot 100, released in December last year, is compiled annually by a panel of industry professionals and experts from around the country and features suburbs they tip to see short- to medium-term price growth based on nine lifestyle, demographic and economic factors.

A new analysis of the list revealed some of the most affordable suburbs on the Hot 100 list were also those with some the strongest annual price growth. Both the most affordable suburbs on the list for houses (Rockhampton in Queensland) and units (Geraldton in Western Australia) also topped the list for most rapid annual price growth – 48% and 57% respectively.

REA Group executive manager of economics Angus Moore said there had been strong growth in more reasonably priced areas in recent years, particularly in some parts of Perth and regional WA, as well as parts of Adelaide.

'Five of the hottest affordable suburbs for 2025': youtube.com/mortgagechoice

“Part of the reason why they've been so popular is they are a bit more affordable than other parts of the country, and in an environment in which housing affordability is at its worst level in at least three decades, we are certainly seeing some buyers look at these more affordable parts of our country,” he said.

Mr Moore said prices should continue to increase across the country this year, albeit at a slower pace.

“We are starting to see the pace of growth slow down, and the fact that housing affordability is as challenging as it is, is a headwind for home prices,” he said.

“On the flip side, we're expecting to see a few interest rate cuts start to alleviate that and help support home prices, which is why we're expecting growth.

“If home prices are moving up, we'd expect to see fewer of the suburbs falling under $500,000.”

10 most affordable for suburbs for houses

Rockhampton took the top spot for most affordable and strongest year-on-year growth for house prices, with a median of $345,000, 48% annual growth and 73% ten-year growth.

The central Queensland locale made Propertyology founder and head of research Simon Pressley's Hot 100 selection for its status as Australia’s last major jurisdiction with a sub $500,000 median house price.

Known for its cattle and fishing, Rockhampton in central Queensland is often called the beef and barra capital of Australia and boasted good economic conditions, Mr Pressley said.

Defence, transport and mining were also significant drivers of the local economy.

As a result, Mr Pressley said, many of Rockhampton’s homebuyers were likely existing residents who were benefiting from a boon in economic conditions.

“On the demand side, this is why we ramble so much about local economic conditions, whether it's Rockhampton or Geraldton or Timbuctoo, if the local economy is strong, local confidence will be high, household incomes will be solid, probably growing,” he said.

“When you add those two things together, the local population is already living there, more people will transact in housing trades, which creates more competition and pushes prices up.”

Geraldton was the most affordable for units and the third most affordable for houses on the Hot 100 list, with a median unit price of $274,500 and a median house price of $405,000.

It had the strongest year-on-year growth for unit prices (57%) and house prices also increased significantly in the year to November 2024, with 21% growth.

10 most affordable city suburbs for units

The regional town in WA’s mid-west boasts a strong economy and possibly Australia’s most affordable real estate model, according to Mr Pressley.

“Geraldton is a major regional city of substance. I affectionately describe it as the biggest city north of Perth,” he said.

 “That port there is an incredibly valuable piece of infrastructure that has among the most diverse mix of commodities that have come in and out of that port.

“It's arguably dollar for dollar, the most valuable affordable real estate model in Australia, the little price you have to pay for a house relative to the rest of Australia, but the fact it's got a sizeable population base of more than 40,000 people.

“Other parts of Australia have got a more affordable median house price, but they've got 5000 or 10,000 people living there, and they don't have a massive, big port like that.”

REA Group executive manager of economics Angus Moore says house prices are set to continue increasing in 2025. Picture: supplied

Inverell in New South Wales was the second-most affordable for both houses and units, with medians of $380,000 and $317,000 respectively.

A stunning spot between midway spot between Sydney and Brisbane Inverell made Ms Denham’s Hot 100 pick for its accessibility to other regional centres

Known as the Sapphire City, Inverell in the Northern Tablelands of New South Wales has opportunities for farming, gem fossicking, and outdoor recreation and features affordable housing, excellent schools, and healthcare facilities, she said.

“Geographically it’s a beautiful part of the world right on that Queensland border - it’s just so lush,” she said.

This three-bedroom house in Inverell is currently on the market with an asking price of $470,000. Picture: realestate.com.au

She said the locale’s significant house price growth of 62% over ten years was of no surprise.

“We've seen from the Northern Rivers area in New South Wales, and from that area up to the Golden Triangle, and up to the Sunshine Coast, there's been so much migration, and we've seen so much activity and growth in that region,” she said.

Offering a mix of property styles with bigger allotments, hobby farms and rural properties, Ms Denham said buyers could still snap up a three bedroom home in Inverell for around the $400,000 plus range mark.

“It's a nice, affordable market for families to get into as well,” she said.

10 most affordable city suburbs for houses

Melbourne suburbs made up half of the top 10 cheapest city suburbs for houses, while four were in Adelaide and one was in Hobart.

The most affordable was Adelaide's Andrews Farm, with a median house price of $556,000.

Harcourts chief executive Adrian Knowles said the suburb’s high capital growth of 20% for the year and 114% in the past 10 years – along with its high rental yield and low vacancy rates – made it ideal for investors. 

“A large percentage of the population rent. This area is an investment special – high growth, high yield, and low vacancy," Mr Knowles said.

Bayswater in Perth's inner-east was the most affordable city suburb for units, and also saw some of the strongest unit-price growth in the year – 42% to a median of $410,000 – the fastest increase of any city suburb on the list.

10 most affordable city suburbs for units

Bayswater was fast becoming an “aspirational suburb” offering a diverse range of housing options, Real Estate Buyer's Agency Association of Australia WA state representative, and Capital Property Advisory managing director Matthew Hughes said.

He selected Bayswater as one of his Hot 100 picks for its array of amenity such as schools and recreation, as well as its proximity to the airport, and its new train station.

“Over the years it has become a pretty trendy place to live,” he said.

“As an area, it has gentrified and has popped up with a lot of breweries, wine bars great restaurants, so it’s a really bustling.”

This article first appeared on realestate.com.au and has been republished with permission.