Suburbs where buying is now cheaper than renting

In 13 suburbs across Canberra, buying a home is now cheaper than renting, according to a recent affordability analysis.

This shift in the market matters now because it signals a potential turning point for public servants and first-home buyers who have been priced out of the market in recent years. With the ACT median house price sitting at around $835,000, many potential buyers have been forced to rent instead. However, with interest rates at historic lows and rental yields tightening, the equation is changing. The growth corridors of Gungahlin and Belconnen are experiencing significant development, with new suburbs and estates springing up around the light rail line and major transport hubs like the Belconnen Bus Station and Gungahlin Place.

In suburbs like Ngunnawal and Casey, where the median house price is around $720,000 and $780,000 respectively, buyers can secure a mortgage with repayments lower than the average rent for a similar property. The same is true in parts of Harrison, where a three-bedroom house can be bought for around $680,000. Organisations like the Housing Industry Association and the Real Estate Institute of the ACT are taking notice of this trend, which is being driven in part by government policies like the Home Buyer Concession Scheme and the Australian Government's First Home Loan Deposit Scheme.

Drilling down into the data

A closer look at the numbers reveals that in some suburbs, the difference between renting and buying can be as little as $50 per week. For example, in the suburb of Franklin, where the median house price is around $820,000, the average mortgage repayment would be around $420 per week, compared to an average rent of $470 per week for a similar property. This data is based on figures from CoreLogic and the Australian Bureau of Statistics, which show that as of June 2026, the average rental yield in Canberra was 4.1%, while the average variable home loan rate was 4.5%.

So what does this mean for potential buyers and renters in Canberra? For those who have been waiting for the right moment to enter the market, now may be the time to start looking. Suburbs like Crace and Nicholls, which offer a mix of established and new homes, are worth considering. Buyers should also be aware of the various government schemes and incentives available to them, such as the $15,000 Home Buyer Concession Scheme and the $20,000 Australian Government First Home Loan Deposit Scheme. As the property market continues to evolve, one thing is clear: for some buyers in Canberra, purchasing a home is now a more affordable option than renting.