The Melbourne suburbs where you should have bought a house

Add articles to your saved list and come back to them any time.Nearly 100 suburbs have fallen out of reach for homebuyers over the past two years, as rising interest rates push the cost of buying a home to unaffordable levels.

For singles, 142 markets had become unattainable over the past two years, and just 19 are considered affordable in 2024. In 2022, the Reserve Bank began hiking interest rates at the steepest pace in decades, and brought them from a record low of 0.1 per centThe analysis used estimated borrowing capacities from Canstar, based on the average salary of $98,212. Suburb house and unit medians below estimated borrowing capacity were considered affordable.

Dual-income couples would need to stump up $59,125 in stamp duty for the most expensive home they could afford; a couple with one-and-a-half the average income would need to pay $40,445, and a single would pay $19,870, if they weren’t a first home buyer. Otherwise, it would be waived.Mortgage repayments would be $2445 a month for a single, $3976 for a household on 1.5 times the average income, and $5652 for a dual-income household.

Angelakis expanded his search to inner western suburbs, such as Footscray, in the hope of finding an affordable house.Jas Stephens selling agent George Alexander said it was common to see buyers from the inner north looking to purchase in Footscray and West Footscray because of their affordability. More high-end areas like Seddon and Yarraville were becoming too expensive for young professionals looking for a bargain, he said.

“People still see it as cheap,” he said.“ I don’t know what kind of world we live in where you need $600,000-plus for a unit, $1 million for a house.”

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