Affordability remains a key priority for buyers across the country, so industry experts have handpicked some of the hottest affordable suburbs expected to perform well in 2025.
New insights from the REA group, curated by a panel of property specialists, highlight the 100 most promising suburbs for 2025 based on lifestyle, economic and demographic factors such as cost, location and amenity.
This year over a third of suburbs included on the list were selected because of their affordability, among several other factors.
Since the pandemic, home prices have increased by 46% nationwide, while wages have increased just 14% throughout the same period. The time taken to save for a deposit has also risen to over five and a half years.
With a typical household now able to afford the lowest share of homes on record, it is unsurprising that a large share of suburbs forecasted for future growth are those that have more affordable housing.
| Suburb | Median house price | Median unit price |
| Inverell | $380,000 | $317,000 |
| Orange | $690,000 | $454,500 |
| Batemans Bay | $700,000 | $537,500 |
| Coffs Harbour | $800,000 | $560,000 |
| Prestons | $1,120,000 | $793,000 |
| Lakemba | $1,412,000 | $447,000 |
| Tempe | $1,680,000 | N/A |
| Enmore | $1,872,500 | $875,000 |
In New South Wales, Inverall, Orange and Batemans Bay were all selected for the affordability of their homes. Both houses and units were well below the respective state medians of $1,040,000 and $767,000 and show potential for strong growth in the short to medium term.
Tempe and Enmore were among the most affordable suburbs on the list in close proximity to the city, especially in comparison to their more expensive neighbouring suburbs.
| Suburb | Median house price | Median unit price |
| Shepparton | $460,000 | $380,000 |
| Werribee | $613,750 | $430,000 |
| Sunshine West | $675,500 | $605,500 |
| Braybrook | $730,000 | $600,000 |
| Karingal | $865,000 | $490,000 |
Werribee, Sunshine West and Braybrook all suburbs west of Melbourne's CBD are predicted to outperform due to their budget-friendly homes. Houses were up to 20% cheaper than what was typically seen in Victoria.
Shepparton and Karingal were also included in the Hot 100 for their affordability.
| Suburb | Median house price | Median unit price |
| Rockhampton | $345,000 | $475,000 |
| Kirwan | $494,000 | $332,500 |
| Gatton | $510,000 | $345,000 |
| Caboolture | $718,750 | $376,075 |
| Nambour | $750,000 | $505,500 |
| Coomera | $857,500 | $625,500 |
| Banyo | $946,250 | $598,500 |
| Ferny Hills | $968,600 | N/A |
Rockhampton, Kirwan, and Gatton were chosen in Queensland for their low housing costs. House prices were considerably less expensive than the median house price of $780,000 and median unit price of $620,000 in our third largest state.
The inclusions of Caboolture and Nambour in the Hot 100 are due to their potential for future growth. Both suburbs have had double-digit price increases in the past year, driven largely by the affordability of their homes.
| Suburb | Median house price | Median unit price |
| Murray Bridge | $467,500 | $370,000 |
| Port Lincoln | $470,000 | $382,250 |
| Andrews Farm | $556,000 | N/A |
| Munno Para West | $585,000 | N/A |
| Morphett Vale | $650,000 | $510,000 |
| Christies Beach | $700,000 | $550,000 |
| Largs North | $808,000 | N/A |
| Underdale | $970,000 | N/A |
Murray Beach, Port Lincoln and Andrew's Farm edged out other suburbs in South Australia to make the list.
For those looking for affordable areas in the state, these locations offer promising opportunities for both value and future growth. In the past year house and unit prices grew by at least 15%, while still being priced significantly below South Australia's typical home prices.
| Suburb | Median house price | Median unit price |
| Busselton | $787,500 | $607,000 |
| Edgewater | $841,000 | N/A |
Busselton and Edgewater in Western Australia were selected for their affordable housing options.
While homes are priced above median in the state, their appealing location and lifestyle offerings make them relatively affordable options compared to nearby suburbs.
| Suburb | Median house price | Median unit price |
| Devonport | $472,250 | $396,000 |
| Glenorchy | $557,500 | $435,000 |
| Suburb | Median house price | Median unit price |
| Howard Springs | $770,000 |
The price of a property will continue to be a key consideration for Australians when purchasing a home as cost of living rises and households take longer to save.
With home prices continuing to grow, we expect these aforementioned suburbs to outperform in the upcoming year as a result of their affordability.
