Revealed: The postcodes where an Aussie earning an average salary can STILL buy a house – but these hidden gems won’t be around for long

Australia’s younger generation is certainly having a tough time when it comes to getting their foot on the property ladder.

And for those who have ambitions beyond a one- or two-bedroom apartment, the number of affordable homes appears to be shrinking.

House prices are rising at levels well above wage growth, meaning those who want to buy their own home with a backyard are being priced out of the market.

The situation is particularly dire in Sydney, Brisbane, Adelaide and Perth, where the most aggressive rate hikes in a generation have failed to slow the turbocharged property market. Meanwhile, high foreign immigration has led to a spiraling rental crisis.

Even the more affordable postcodes, such as those in southeast Queensland, are seeing record growth as Sydneysiders flee north.

A glimmer of hope for first-time homebuyers is Melbourne, where house prices have fallen in the past year and land taxes have deterred investors.

But what does all this mean for a young person who wants to buy? Or an investor? Or a parent who wants to help their child onto the property ladder?

Here are the numbers: Someone with an average full-time salary of $100,017 can buy a home worth up to $650,110 if they have a 20 percent down payment of $130,022.

Australia’s younger generation is certainly having a tough time when it comes to buying a home (pictured is an auction in Sydney)

The banks can only lend someone 5.2 times their salary, meaning the average homebuyer Australian can borrow $520,088.

But this means putting 38 percent of pre-tax wages on monthly mortgage payments, pushing these types of borrowers into mortgage stress territory.

If this is a risk you’re willing to take, we’ve explored the suburbs where an ordinary Australian can still buy a good home of their own.

But buyers should act quickly sooner Potential rate cuts in 2025 will lead to even more activity in an already hot market.

Woodridge, just 14 miles south of Logan city centre, still has an affordable house price of $620,294

Woodridge, just 14 miles south of Logan city centre, still has an affordable house price of $620,294

Woodridge, Queensland

  • Home prices in Logan have doubled in the past five years
  • Woodridge’s median home price is still affordable at $620,294
  • Market attractive for both investors and owner-occupiers

Average house prices in Logan, south of Brisbane, have doubled in the past five years in an area along the M1 highway that links the Queensland capital to the Gold Coast.

But the suburb of Woodridge, just 22km south of the city centre, still has an affordable house price of $620,294 – a level well below Greater Brisbane’s $977,575, based on CoreLogic data.

James Kirkland, general manager of sales at Little Real Estate, said Logan was one of Australia’s hottest markets because it was attractive to both investors and first home buyers.

“Based on what we’re seeing, there are no signs of slowing down in that area of ​​Logan City,” he told Daily Mail Australia.

“That’s without a doubt one of the most in-demand areas in Brisbane.

“With the increase in the number of southern investors in that market, you’re seeing investors and first home buyers duking it out in the suburbs of Logan.”

San Remo, near Tuggerah Lake and 115km north of Sydney, has an average house price of $692,302, meaning a buyer should look for bargains below the area's mid-range.

San Remo, near Tuggerah Lake and 115km north of Sydney, has an average house price of $692,302, meaning a buyer should look for bargains below the area’s mid-range.

San Remo, Central Coast, New South Wales

  • NSW Central Coast has homes for under $700,000
  • That’s less than half of Sydney’s average amount of $1.5 million
  • An option for those who work in Sydney and still want a backyard

Sydney’s median house price of $1.5 million is well out of reach for most buyers, unless they make $226,621.

They are also said to still be in mortgage stress and spend more than a third of their wages on mortgage repayments, despite belonging to the 2.3 percent highest income earners.

“On your own, at the average wage, to buy around that $600,000 – let’s face it, unless you buy a very small townhouse somewhere near the city, I don’t think it’s possible,” says the Mr. Kirkland. .

“If it’s a detached house, you’re going to have a hard time.”

But there are parts of the Central Coast, an hour’s drive north, where it is still possible to buy a house for just over $600,000.

San Remo, near Tuggerah Lake and 115km north of Sydney, has a median house price of $692,302, meaning a buyer should look for a bargain below the suburb’s mid-range.

It is a 20-minute drive from Wyong Train Station – a two-hour journey to Sydney Central Station.

“It would probably almost be faster to get from the Central Coast to Sydney than if you were sitting in traffic from the outer edge of the western suburbs,” Kirkland says.

Meadow Heights, 26km north of Melbourne's city centre, has a median house price of $578,590, while prices rose just 0.9 per cent last year

Meadow Heights, 26km north of Melbourne’s city centre, has a median house price of $578,590, while prices rose just 0.9 per cent last year

Meadow Heights, Melbourne

  • Melbourne still has suburbs with house prices in the $600,000s
  • They are well below the Melbourne median of $917,616
  • Pockets of affordability unlike Sydney or even Brisbane

Melbourne’s northern suburbs have postcodes where average house prices are below $600,000 and at levels well below the Victorian capital’s midpoint of $925,762.

Meadow Heights, 16 miles north of downtown, has a median home price of $578,590, while prices rose just 0.9 percent last year.

“It hasn’t seen this level of growth yet and there are still areas where it is affordable to buy a house,” says Mr Kirkland.

‘The infrastructure is there in the northwest to get you into the city reasonably well.’

The Victorian government’s $975 flat-rate land tax to pay for Covid lockdowns has been blamed for a 2.9 per cent drop in Melbourne house prices last year.

As a result, property price growth has remained well below the wage increase of 3.5 percent, giving buyers more choice at the bottom of the market.

“This is going to be an interesting time for Melbourne because the city has been so inactive. There’s a return to that time because it’s showing more value and the capital growth just hasn’t happened.”

Adelaide's northern suburbs have affordable homes, while Salisbury has a median price of $645,477, just 25km north of the city

Adelaide’s northern suburbs have affordable homes, while Salisbury has a median price of $645,477, just 25km north of the city

Salisbury, Adelaide

  • Adelaide’s north has suburbs that are affordable for people on average incomes
  • House prices in Salisbury have risen by 19.5 per cent in just one year
  • But the median home price of $645,477 is still relatively affordable

The South Australian capital has been one of the strongest property markets, with average house prices rising 12.5 per cent in a year to an even more unaffordable $866,327.

But Adelaide’s northern suburbs still have affordable homes, with Salisbury having an average price of $645,477 and being just 25km north of the city.

Prices here have risen by 19.5 percent in one year.

“In terms of accessibility to the city, Salisbury is just a very short drive away,” Mr Kirkland said.

Unlike Brisbane, Adelaide has a higher proportion of owner-occupiers, which means less competition from potential investors.

“The Adelaide market has obviously done well, but not before. It’s almost like the pent-up growth that would inevitably happen,” Kirkland says.

Perth's median house price of $847,518 is now out of the reach of middle-income self-buyers - but there are still affordable suburbs like Nollamara, just 9km north of the city, where the median price is $684,473.

Perth’s median house price of $847,518 is now out of the reach of middle-income self-buyers – but there are still affordable suburbs like Nollamara, just 9km north of the city, where the median price is $684,473.

Nollamara, Perth

  • Perth is Australia’s best performing market

Western Australia’s mining-rich capital has been the country’s best-performing market, with house prices rising 18.7 per cent in 2024 due to the influx of new residents from other states.

“What’s driving that is a shortage of inventory,” Mr. Kirkland said.

Perth’s median house price of $847,518 is now out of the reach of middle-income self-buyers – but there are still affordable suburbs like Nollamara, just 9 kilometers north of the city, where the median price is $684,473.

State of affairs

Mr Kirkland says the typical first home buyer came in with help from the ‘Bank of Mum and Dad’.

“The profile that only buys if they’re a younger buyer, for example, normally comes with a parent,” he said.

“There is support from the Bank of Mum and Dad, whether that is a loan insurance guarantee or a deposit.”

Reserve Bank Governor Michele Bullock has ruled out any rate cut within the next six months, but rate cuts in 2025 are expected to fuel even more competition on the affordable side of the housing market as more people look to leave their apartments.

“We’re going to start to attract more first-home buyers to the market,” Kirkland says.

“Once that happens, it will be a high-speed activity.”