“48 Sydney Suburbs: Homes Cheaper to Buy Than Rent”
Recent analysis reveals that buying a home in certain Sydney suburbs can be more cost-effective than renting. As rental prices continue to rise, this shift has resulted in 48 suburbs across Greater Sydney where mortgage payments are lower than weekly rents for units.
Key Findings on Sydney’s Real Estate Market
The data compiled by Finder.com.au highlights how the inner-city markets have become more attractive for buyers. This is largely due to an influx of students and international migrants, leading to a significant rental shortage. The demand for rental properties has surged without a corresponding rise in home buyer interest.
Regional Insights
Beyond Sydney, 17 additional suburbs in regional New South Wales also report that owning a unit costs less than renting. This accounts for around 12% of the state’s unit market.
Cost Comparisons in Specific Suburbs
In the inner Sydney suburbs of Haymarket, Chippendale, and Mascot, buyers can save over $100 per week compared to renting. Other suburbs such as Granville, Zetland, and Eastgardens also demonstrate notable weekly savings, typically ranging from $50 to $100.
Cost Analysis Summary
- Haymarket: Rent $1,200 | Mortgage $1,017 | Savings $183
- Chippendale: Rent $880 | Mortgage $751 | Savings $129
- Mascot: Rent $1,050 | Mortgage $924 | Savings $126
- Granville: Rent $630 | Mortgage $533 | Savings $97
- Zetland: Rent $1,100 | Mortgage $1,011 | Savings $89
- Eastgardens: Rent $1,100 | Mortgage $1,030 | Savings $70
Rental Trends and Market Dynamics
The ongoing rental crisis is illustrated by the rising unit rents in Greater Sydney, which increased an average of 7.1% last year. Experts predict that rents will continue to rise, potentially reaching all-time highs by 2026. The low vacancy rates indicate that available rental homes are being filled rapidly.
Barriers to Home Ownership
Despite the advantages of buying over renting in some suburbs, the journey to ownership remains challenging. Finder’s head of consumer research, Graham Cook, emphasized that the high entry costs and rising debt keep home ownership out of reach for many Australians. Potential buyers typically need a 20% deposit to avoid high costs associated with low-deposit home loans.
Conclusion
While there are suburbs in Sydney where it is financially wiser to buy than rent, the overall property landscape remains complex. High home prices and rental inflation pose significant challenges for many aspiring homeowners. For most, renting continues to be the more viable option in the current market.
