Research has shown that younger Australians are leaving major cities at a rate 20% above pre-pandemic levels in hopes of securing more affordable living, with more than 24% moving from cities to regional zones than the other way around.
Compare the Market has released new research examining average prices in selected cities across the country to see which are more affordable than state capitals.
New South Wales had the most dramatic difference with the most affordable locations outside of Sydney being Taree, Tamworth and Dubbo.
Taree was 133% cheaper with an average house price of A$469,081, while Tamworth was 129% cheaper ($477,735), followed by Dubbo with an average 123% ($492,088) price drop in housing.
In Victoria the average house price in Traralgon was 91% less than Melbourne, followed by Mildura at 89% and Shepparton was 68% less on average.
While in the country's northeast, regional cities had the biggest price increases over capitals.
Queensland’s Sunshine Coast and Gold Coast were 18% and 15% more expensive respectively than Brisbane's average housing price.
Around the country the only other city that saw as big an increase over the capital was Busselton in Western Australia, which was 15% more expensive than Perth’s average price ($751,000).
Stephen Zeller from Compare the Market said there are plenty of affordable options if people are willing to move from the big cities.
“There are pros and cons to buying in a small country town. It’s a lot more affordable, but what will you do for work? Will you have family or friends close by?” said Zeller.
“Working from home has made it easier to move further away from big cities to places that are more affordable. The lifestyle won’t be for everyone, but it could be your chance to finally get your foot in the door when it comes to owning a home.”
However, according to the NSW government, housing is considered affordable if it costs less than 30% of gross household income.
Housing affordability is also defined by its availability to very low to moderate income households. It is priced so that these households can meet other basic living costs such as food, clothing, transport, energy, medical care and education.
Therefore it is critical for households to consider more than the cost of a dwelling when deciding whether or not it is affordable to live in certain cities.
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