PropTrack expert reveals 36 affordable inner city suburbs for renters

An expert has named 36 postcodes close to CBDs where asking rents for houses or units are now affordable.

City areas are improving in affordability. Picture: Ian Currie

Rental price growth has finally begun to slow across the nation’s capitals, as vacancy rates slowly creep upwards.

The latest PropTrack data revealed rents had grown by 7 per cent nationally over the past year, which was just half the growth rate of the previous year and less again than the two years of post-Covid spikes faced by renters.

PropTrack economic analyst Megan Lieu acknowledged that finding a rental had become difficult in recent times, but said that there were some affordable options not too far from CBD areas in capital cities.

PropTrack economic analyst Megan Lieu.

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“The increase of rental stock has been one key factor easing rental conditions,” Ms Lieu said. “Since November 2023, total rental listings have risen by 7.1 per cent, likely due to a return of investors and more people opting to purchase their first home instead of renting.

However, on a historic basis, demand is high and supply remains low.

“Renters are facing tough conditions … But homes in a number of inner-ring suburbs, those within the closest third in terms of distance to the CBD, still offer reasonably priced suburbs.”

Sydney is offering up some rare value close to the CBD. Picture: Damian Shaw

NSW

Ms Lieu said that in Sydney, annual rental growth was just 6 per cent from November 2023 to the same month in 2024, which was well down from the 17 per cent growth of the year prior.

“While the slowing of growth offers some relief for renters in our largest city who have had to endure substantial rent rises, weekly rents are still about 1.5 times higher than February 2020,” she said.

Ms Lieu said that for suburbs within 12kms of the Sydney CBD, Banksia had the cheapest rental houses, with weekly median rents of $765.

MORE: Sydney’s 10 cheapest inner city rental markets

Melbourne has some pockets of affordability now appearing. Picture: Ian Currie

VIC

Melbourne, like Sydney, had seen rental growth of 6 per cent for the year, down from 17 per cent, though “weekly rents are still about 35 per cent higher than February 2020”, Ms Lieu said, adding that for suburbs within 11kms of the Melbourne CBD, Brooklyn was the cheapest for houses, with the weekly median rent at $550.

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Brisbane rentals grew by 5 per cent in the past year. Picture: Lachie Millard

QLD

Brisbane saw annual rent growth of just 5 per cent for the year, which was half the rate recorded in the same period a year earlier.

Ms Lieu said that Rocklea was the cheapest of the suburbs within 10km of the CBD for renting houses, with a median weekly rent of $533.

MORE:Brisbane’s 10 cheapest inner city rental markets

Adelaide rents are still growing strongly. Picture: Emma Brasier

SA

Adelaide has shown itself to be the capital where rent prices are still growing strongly, with growth of 9 per cent for the year only slightly down on the 10 per cent of the year prior, with weekly rents now 1.5 times higher than February 2020.

Looking at suburbs within 8km of Adelaide CBD, Ms Lieu pointed to Kilburn as the cheapest market for houses, with a weekly median rent of $525.

MORE:Adelaide’s six cheapest inner city rental markets

Originally published as PropTrack expert reveals 36 affordable inner city suburbs for renters