Buying a home has long been considered a major life milestone, a financial goal that many Australians strive for. But in today's high-cost housing market, is it really the smarter move? 

With homeownership rates declining - especially among younger Australians - and the proportion of renters rising from 20% in 1999-2000 to 26% in 2019-2020, affordability is an ever-growing concern. Many renters aspire to buy, but the reality is that high property prices, deposit requirements, and mortgage rates make ownership a significant financial challenge.

Yet, is renting always the cheaper option? Or could homeownership be more affordable than expected?

To answer this, Your Mortgage crunched the numbers across all major Australian capital cities. The results may surprise you.

Renting isn't always the cheapest choice - especially for those buying units, townhouses, or apartments. In cities like Perth, Hobart, and Darwin, mortgage repayments can be comparable - or even cheaper - than rent. But in Sydney, Brisbane, and Adelaide, the leap from renting to owning may be steeper than expected.

Considering getting your own place? Crunch the numbers using our Rent or Buy Calculator

So, should you keep renting or take the plunge into homeownership? Let's break it down city by city.

Methodology

Now for the boring details…

Your Mortgage used the most recent CoreLogic data available in February 2025 to calculate the cost of renting and buying in various cities across Australia. The figures below are rounded to the nearest thousand.

But that only paints part of the picture. After all, what good is a cheap house if you can't earn a decent wage?

So, we also factored in the median weekly earnings of a full-time worker in each greater capital city area using data collected by the Australian Bureau of Statistics in August 2024.

Additionally, our assumptions on the cost of owning a home assume a homebuyer is able to put down a deposit of 20% of their property's value and has a 30-year mortgage with an interest rate of 6.00% p.a.

Since we've assumed that a buyer was able to save a 20% deposit, we also calculated how long it would take to accumulate such savings if a typical earner was to save 30% of their weekly wage.

Here's what we found:

Is it cheaper to buy than rent in Sydney?

Sydney is famously the most expensive city to purchase real estate in Australia – and it’s also costly to rent in the harbourside city. But is one option more unaffordable than the other?

It turns out that, yes, it is notably more expensive to own in Sydney than it is to rent.

Fortunately, Sydney also typically offers higher wages than other Aussie cities. Full-time workers living in Sydney bring in a median of $1,732 per week, or around $90,000 per year.

How much does it cost to rent or buy in Sydney?

Houses Units
Median rent p/w $811 $710
Median value $1.474 million $858k
Mortgage repayment* (p/w) $1,768 $1,029

*Assumes a 20% deposit, a 30-year loan term, and a 6% p.a. interest rate

What portion of a median income is needed to afford rent/mortgage repayments?

Straight away, we can see that a household on a single median income likely won’t be able to purchase a house in the city:

Houses Units
Mortgage repayments as % of income 102% 59.4%
Rent as % of income 46.8% 41%

How long would it take to save a deposit for a property in Sydney?

Sydney's property market demands some of the longest saving periods in the country.

For a median earner, Sydney’s price-to-income ratio is 9.5 for units—meaning it would take nearly a decade’s salary to buy a property outright. And for houses? A staggering 16.4 years.

Here’s how long a typical earner might need to save a 20% deposit if setting aside 30% of their income:

Houses Units
Time taken to save deposit 10 years, 11 months 6 years, 4 months

Is it cheaper to buy than rent in Melbourne?

Melbourne is Australia’s second-largest property market, and while it’s cheaper than Sydney, housing affordability remains a significant challenge. But is it more expensive to buy or rent in the city?

The data suggests that, yes, owning a home in Melbourne is still more expensive than renting – especially for those buying houses.

Fortunately, Melbourne offers relatively strong wages, with full-time workers earning a median income of $1,799 per week, or around $93,548 per year.

How much does it cost to rent or buy in Melbourne?

Houses Units
Median rent per week $633 $566
Median property value $917,132 $602,602
Mortgage repayment* $1,099 $723

*Assumes a 20% deposit, a 30-year loan term, and a 6% p.a. interest rate

How much income is needed to afford rent vs. mortgage repayments?

A household on a single median income would struggle to afford a house in Melbourne, with mortgage repayments eating up over 60% of earnings.

Houses Units
Mortgage repayments as % of income 61.1% 40.2%
Rent as % of income 35.2% 31.5%

While houses remain expensive, units present a more affordable option, with mortgage repayments sitting at 40.2% of income, compared to 31.5% for rent.

How long does it take to save a deposit for a home in Melbourne?

Melbourne remains expensive, but it’s noticeably more affordable than Sydney.

For a median earner, Melbourne’s price-to-income ratio is 6.4 for units – meaning it would take just over six years of salary to buy a unit outright. Houses, however, require a much higher ratio of 9.8.

Here’s how long a typical earner might need to save a 20% deposit if setting aside 30% of their income:

Houses Units
Time taken to save deposit 6 years, 6 months 4 years, 3 months

Is it cheaper to buy than rent in Brisbane?

Brisbane’s property market has grown steadily in recent years, attracting both investors and homebuyers. But when it comes to affordability, is it cheaper to rent or buy in the city?

The data shows that owning a home is more expensive than renting, particularly for houses, though units provide a more affordable entry point into the market.

Full-time workers in Brisbane earn a median income of $1,700 per week, or around $88,400 per year.

How much does it cost to rent or buy in Brisbane?

Houses Units
Median rent per week $681 $593
Median property value $977,343 $685,291
Mortgage repayment per week* $1,172 $822

*Assumes a 20% deposit, a 30-year loan term, and a 6% p.a. interest rate

What portion of a median income is needed to afford rent or mortgage repayments?

A household on a single median income would struggle to afford a house in Brisbane, as mortgage repayments take up 68.9% of earnings.

Houses Units
Mortgage repayments as % of income 68.9% 48.3%
Rent as % of income 40.1% 34.9%

While houses remain costly to own, units present a more manageable option, with mortgage repayments taking up 48.3% of income, compared to 34.9% for rent.

How long does it take to save a deposit for a home in Brisbane?

For a median earner, Brisbane’s price-to-income ratio is 7.8 for units, meaning it would take nearly eight years of salary to buy a unit outright. For houses, the ratio increases to 11.1.

Here’s how long a typical employee might take to save a 20% deposit if setting aside 30% of their income:

Houses Units
Time taken to save deposit 7 years, 5 months 5 years, 2 months

Is it cheaper to buy than rent in Adelaide?

Adelaide’s property market has remained strong in recent years, with steady price growth across both houses and units. But is it more affordable to rent or buy in the city?

The data shows that, as in other capital cities, owning a home in Adelaide is more expensive than renting. However, mortgage repayments for units are relatively close to rental costs, making them a more accessible option for buyers.

Full-time workers in Adelaide earn a median income of $1,579 per week, or around $82,108 per year.

How much does it cost to rent or buy in Adelaide?

Houses Units
Median rent per week $630 $525
Median property value $872,553 $590,953
Mortgage repayment per week* $1,046 $709

*Assumes a 20% deposit, a 30-year loan term, and a 6% p.a. interest rate

What portion of a median income is needed to afford rent or mortgage repayments?

A household on a single median income would find it difficult to afford a house in Adelaide, with mortgage repayments taking up 66.3% of earnings.

Houses Units
Mortgage repayments as % of income 66.3% 44.9%
Rent as % of income 39.9% 33.2%

While mortgage repayments for houses are significantly higher than rent, units present a more balanced alternative, with mortgage costs taking up 44.9% of income, compared to 33.2% for rent.

How long does it take to save a deposit for a home in Adelaide?

For a median earner, Adelaide’s price-to-income ratio is 7.2 for units, meaning it would take just over seven years of salary to buy a unit outright. For houses, the ratio increases to 10.6.

Houses Units
Time taken to save deposit 7 years, 1 month 4 years, 8 months

Is it cheaper to buy than rent in Perth?

Perth's property market has seen steady price growth, particularly in the housing sector, making affordability an increasing concern for buyers and renters alike. But is it more expensive to own or rent in the city?

The data shows that while owning a house in Perth costs more than renting, mortgage repayments remain lower than in many other capital cities. Units are even more accessible, with mortgage costs not much higher than rental prices.

Full-time workers in Perth earn a median income of $1,877.50 per week, or around $97,630 per year.

How much does it cost to rent or buy in Perth?

Houses Units
Median rent per week $706 $631
Median property value $843,805 $522,971
Mortgage repayment per week* $1,012 $627

*Assumes a 20% deposit, a 30-year loan term, and a 6% p.a. interest rate

What portion of a median income is needed to afford rent or mortgage repayments?

A household on a single median income would need to allocate more than half of their earnings to cover mortgage repayments for a house in Perth.

Houses Units
Mortgage repayments as % of income 53.9% 33.4%
Rent as % of income 37.6% 33.6%

While mortgage repayments for houses are higher than rent, units in Perth are a more different story, with mortgage costs accounting for 33.4% of income – slightly less than the cost of renting.

How long does it take to save a deposit for a home in Perth?

For a median earner, Perth's price-to-income ratio is 5.4 for units, meaning it would take just over five years of salary to buy a unit outright. For houses, the ratio increases to 8.6.

Here’s how long a typical earner might need to save a 20% deposit if setting aside 30% of their income:

Houses Units
Time taken to save deposit 5 years, 9 months 3 years, 7 months

Is it cheaper to buy than rent in Hobart?

Hobart has long been considered one of Australia's most affordable capital cities, but strong price growth over the past decade has made homeownership increasingly challenging. So, is it now more expensive to own or rent in the Tasmanian capital?

The data shows that, as in other cities, owning a home in Hobart is more costly than renting—particularly for houses. However, unit affordability is more balanced, with mortgage repayments not significantly higher than rental costs.

Full-time workers in Hobart earn a median income of $1,500 per week, or around $78,000 per year.

How much does it cost to rent or buy in Hobart?

Houses Units
Median rent per week $573 $483
Median property value $698,345 $366,694
Mortgage repayment per week* $837 $440

*Assumes a 20% deposit, a 30-year loan term, and a 6% p.a. interest rate

What portion of a median income is needed to afford rent or mortgage repayments?

A household on a single median income would need to allocate more than half of their earnings to cover mortgage repayments for a house in Hobart.

Houses Units
Mortgage repayments as % of income 55.8% 29.3%
Rent as % of income 38.2% 32.2%

How long does it take to save a deposit for a home in Hobart?

For a median earner, Hobart’s price-to-income ratio is 4.7 for units, meaning it would take just under five years of salary to buy a unit outright. For houses, the ratio is higher at 9.0.

Here’s how long a typical earner might need to save a 20% deposit if setting aside 30% of their income:

Houses Units
Time taken to save deposit 6 years 3 years, 1 month

Is it cheaper to buy than rent in Darwin?

Property price growth in Darwin has lagged over the last decade or so, resulting in it becoming one of Australia’s more affordable capital cities. So, is it now more expensive to own or rent in the Northern Territory’s capital?

The data shows that while owning a house in Darwin is more expensive than renting, mortgage repayments remain more manageable than in most other capital cities. Units offer an even more accessible entry point into homeownership, with mortgage costs close to rental prices.

It’s important to note that income data for Darwin is based on full-time earnings across the entire Northern Territory, not just the capital. The median full-time income in the NT is $1,700 per week, or around $88,400 per year.

How much does it cost to rent or buy in Darwin?

Houses Units
Median rent per week $687 $545
Median property value $582,971 $522,971
Mortgage repayment per week* $699 $627

*Assumes a 20% deposit, a 30-year loan term, and a 6% p.a. interest rate

What portion of a median income is needed to afford rent or mortgage repayments?

A household on a single median income would need to allocate nearly 41% of their earnings to cover mortgage repayments for a house in Darwin, making it one of the more affordable capitals for homeownership.

Houses Units
Mortgage repayments as % of income 41.1% 36.9%
Rent as % of income 40.4% 32.1%

Mortgage repayments for houses in Darwin are only slightly higher than rent, which takes up around 40% of a median employee’s wage.

Meanwhile, the mortgage repayments for a typically-priced unit require just 36.9% of the median income, compared to 32.1% for rent.

How long does it take to save a deposit for a home in Darwin?

For a median earner, Darwin’s price-to-income ratio is 5.9 for units, meaning it would take just under six years of salary to buy a unit outright. For houses, the ratio is 6.6, reflecting the city’s relatively affordable property prices.

Here’s how long a typical earner might need to save a 20% deposit if setting aside 30% of their income:

Houses Units
Time taken to save deposit 4 years, 5 months 3 years, 11 months

Is it cheaper to buy than rent in Canberra?

Canberra’s property market has remained relatively stable compared to other capital cities, but affordability remains a key concern for homebuyers and renters alike. So, is it more expensive to own or rent in the ACT’s capital?

The data shows that, as in most capital cities, owning a home in Canberra is more expensive than renting. However, mortgage repayments for units are not significantly higher than rental costs.

It’s important to note that income data for Canberra is based on full-time earnings across the entire ACT, not just the city. The median full-time income in the ACT is $1,927 per week, or around $100,220 per year.

How much does it cost to rent or buy in Canberra?

Houses Units
Median rent per week $716 $581
Median property value $968,907 $583,486
Mortgage repayment per week* $1,162 $700

*Assumes a 20% deposit, a 30-year loan term, and a 6% p.a. interest rate

What portion of a median income is needed to afford rent or mortgage repayments?

A household on a single median income would need to allocate more than 60% of their earnings to cover mortgage repayments for a house in Canberra.

Houses Units
Mortgage repayments as % of income 60.3% 36.3%
Rent as % of income 37.2% 30.1%

While mortgage repayments for houses take up a significant portion of income, units present a more affordable alternative, with mortgage costs accounting for 36.3% of income – not too much more than rent.

How long does it take to save a deposit for a home in Canberra?

For a median earner, Canberra’s price-to-income ratio is 5.8 for units, meaning it would take nearly six years of salary to buy a unit outright. For houses, the ratio increases to 9.7.

Here’s how long a typical earner might need to save a 20% deposit if setting aside 30% of their income:

Houses Units
Time taken to save deposit 6 years, 5 months 3 years, 11 months

A warning: Costs of owning are typically greater than just mortgage repayments

Of course, there are more costs to homeownership than simply mortgage repayments.

Homeowners generally need to account for council rates, home insurance, maintenance, and body corporate fees. These ongoing expenses can add up to thousands of dollars per year, making ownership a much greater financial commitment than it may initially appear.

See also: Upfront & ongoing cost calculator

Conversely, rent is a more predictable, fixed cost. Though, rents are subject to market fluctuations - something seen during the recent rental crisis, where record-low vacancy rates led to sharp rent increases. However, renters generally avoid the additional expenses that come with homeownership, limiting their total housing costs.

Image by Sophie Turner on Unsplash

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