30 Sydney suburbs first home buyers can still afford

It’s tougher than ever for first home buyers to get into the property market, however here are 30 Sydney suburbs where it’s more than possible.

Steven and Angelica Harrison have moved four times in the past four years.

With landlords choosing to sell, it has been a tough time for the Central Coast couple as they moved from rental to rental while trying to save for their first home.

However their fourth move to a three bedroom home in San Remo was the dream purchase they have been working towards.

“We are pretty proud of ourselves,” Mrs Harrison, 26, said.

Mr Harrison, 28, said the couple worked hard and gave up time together to save for a deposit for the home which they bought for $685,000.

First home buyers Steven (28) and Angelica (26) Harrison with their daughter Harmonica (2) at their new home in San Remo. Picture: Fiona Killman

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“We worked hard for the deposit; overtime, gave up our weekends. We also had a lot of family support and grandparents helping out with babysitting our daughter.”

San Remo is one of the 30 Greater Sydney suburbs identified in exclusive PropTrack data where first home buyers are able to get a foot in the door.

The data has divided Sydney into inner, middle and outer rings, showing the cheapest suburbs in those areas for houses and units.

For inner Sydney areas, first home buyers are looking at an entry level house price of around $1.3m-$1.5m in inner south and southwest areas such as Banksia, Rockdale and Redfern.

The middle ring sees the lowest median house price of $870,000 in Villawood and suburbs in and around Parramatta, while the outer ring has the western suburb of Blackett with the cheapest median price of $605,000 along with Central Coast suburbs such as San Remo and Gorokan.

Median unit sale prices told a similar story in terms of areas however with much lower prices. The inner west and southwest areas were most affordable in the inner ring, following by the southwest and Parramatta regions.

The cheapest unit prices fell in the outer ring suburb of Cabramatta at $405,000 followed by other western areas and the Central Coast.

A home in Judd St, Banksia sold for $1.35m in April 2023

PropTrack economist Angus Moore said it’s one of the hardest times for first home buyers.

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PropTrack senior economist Angus Moore said it was fair to say it was the toughest time for first home buyers in at least three decades.

“The PropTrack affordability index shows affordability has never been worse in at least three decades, which doesn’t cover 1989 and the peak of mortgage rates,” he said.

“But even if we are comparing to that, measures that do go back that far suggest affordability today is not much better than it was back then. We are really splitting hairs. And what is much harder as a first home buyer today than it was three and a half decades ago is saving a deposit.

“We know that home ownership has been falling for younger households for decades which suggests it is becoming more challenging.”

Mr Harrison, who works as a disability support team leader, said saving a deposit and finding a house they could afford were the most frustrating parts of the journey.

“A lot of houses are over $800,000, it’s too ridiculous,” he said.

“We struggled to find something in our price range.”

The Harrisons couldn’t be happier securing their first home. Picture: Fiona Killman

The couple bought this home in San Remo for $685,000 in April 2023.

Mrs Harrison, who works for Telstra, said they put in an offer after their first inspection.

“There was a lot of competition and we knew we wanted this house,” she said.

Mr Harrison said it was perfect timing with their second baby on the way.

“If it wasn’t now, when would it have been?” he said. “I wonder how people starting to save now will be able to get into a house? We are so happy, we’re close to childcare and family and it’s a safe spot for the kids.”

Mr Moore said there were affordable pockets across Sydney, especially for units.

“If you are looking for a detached house in the inner part of the city there's not going to be very many you can find in an affordable price bracket for a first homebuyer,” he said.

A two-bedroom unit at this complex in John St, Cabramatta sold for $395,000 in April 2023

“Apartments are a different story. Even in the inner city there are some places like Ashfield which are not particularly far from the city, on a major train line, and you can get a median apartment price for a little over $700,000 which is still expensive but at the more affordable end of Sydney home prices.

“For detached house land is a big part of the price of what you are buying in a way that isn’t as true for apartments.”

He said many outer areas gave people more house for their budget.

“People have found the trade off of getting a bit more space but living a bit further away pretty attractive,” he said.

Originally published as 30 Sydney suburbs first home buyers can still afford