Benn Dorrington, Industry Editor and Analyst
First published 7 Oct 2026, 10:48am
Home buyers chasing a house and backyard can still find a bargain in nearly 200 suburbs around Australia, however you may have to look outside the capital cities to secure a cheaper place to live.
New realestate.com.au data has revealed there were 193 suburbs with median house prices of $500,000 or less across Australia in September.
The prospect of buying a house for less than $500,000 will appeal to many home buyers given Australia's latest median house price sits at an eye-watering $974,000 despite national home prices falling over the past six months.
Home purchasers are also facing mounting household budget pressures after recent living cost rises and the Reserve Bank's latest interest rate hike , driving mortgage costs even higher for borrowers.
There are plenty of locations around the country for budget-focused buyers to choose from as long as they are happy to live in a regional area rather than a capital city.
Realestate.com.au senior economist Anne Flaherty said the locations with affordable house prices were mostly situated in regional Australia.
"These locations are predominantly in regional areas, which suggests there is generally less demand in those areas, and it may be why home prices are a little lower," Ms Flaherty said.
"Another point to make is that these are not poor-performing regions. Many are outperforming regional markets more broadly and definitely outperforming capital city markets in terms of price growth.
"It suggests that even though fewer buyers are looking in these markets, prices remain resilient and there are still buyers looking to enter them.”
More than 85% of the suburbs on the list have seen annual home price growth during the year to September, reflecting a demand for affordable real estate nationwide.
There are 193 suburbs across Australia with median house prices of $500,000 or less. Picture: Getty
New South Wales was home to the most locations with house prices under $500,000, offering 55 suburbs for budget buyers to choose from.
Most of the 55 suburbs were located throughout the New England and North West, Far West and Orana, Central West, and Riverina regions of the state.
One location that stood out was the town of Forbes in the Central West region, where more than 200 homes have been sold over the past 12 months, and the median house price has increased 6.6% to $477,500.
Ray White Rural Central West real estate agent Brendon Allegri said Forbes appealed to families, with sought-after schools and mining jobs nearby.
"When I speak to people from outside of the area, especially families, schooling is often one of the reasons why they buy in Forbes," he said.
"Red Bend Catholic College is a popular agricultural school, and I’d say it’s one of the most attractive and sizeable schools in the Central West."
"A lot of people also buy in Forbes because they can drive to Parkes or West Wyalong to work at the mines."
Mr Allegri said affordability also played a role for buyers, with homes in need of work available from as little as the mid-$300,000 price point.
Buyers can still find houses under $500,000 in the NSW town of Forbes. Picture: Getty
"Anyone can get a foot in the door if they're happy to start with a place that might need a bit of paint and other work," he said.
Other NSW affordable hotspots were Broken Hill , Moree , Leeton and Deniliquin .
There were 41 suburbs in Victoria with house prices under $500,000, with most found in the North West, Latrobe – Gippsland, Warrnambool and South West, and Shepparton regions of the state.
One of the state's hotspots was the town of Morwell in the Latrobe – Gippsland region, where 550 homes have changed hands over the past year.
This three-bedroom house in Forbes in NSW sold for $430,000 in September. Picture: realestate.com.au/sold
The flurry of property sale activity has pushed values higher, with the town's median house price jumping 20.2% to $425,000 during the past year alone.
Jesse Watson , real estate agent at First National Real Estate Central KW – Morwell, said there was plenty of commercial activity underway in the town.
"Morwell is between Traralgon and Warragul and there's a lot of work in the area, including industrial jobs and the power stations," Mr Watson said.
"Monash University is about 10 minutes down the road in Churchill , while the Icon industrial estate located on the highway is also being built."
This two-bedroom house in Morwell in Victoria changed hands for $438,000 in September. Picture: realestate.com.au/sold
The uptick in commercial activity throughout the region and the town's relatively affordable home prices had been attracting property investors to Morwell, but interest rate rises and the federal government's recent negative gearing and capital gains tax changes have slowed investment, Mr Watson said.
"There’s less selling, but more properties are coming onto the market, so the general public has more opportunities to see what’s available," he said.
"House prices here are still very affordable compared with most places, and there’s plenty going on, with new estates and industrial areas."
Other Victorian outperformers included Horsham , Moe , Hamilton and Ararat .
Buyers searching in other parts of the country have plenty of options too, with 38 locations scattered throughout Queensland.
The coal mining town of Moranbah in the Mackay - Isaac – Whitsunday region was the busiest sub-$500,000 property market in the state, with 242 home sales over the past year.
Moranbah's median house price has increased 10.1% to $421,250 during the past year.
Annemarie Haywood , real estate agent and owner of A H Realty – Moranbah, said the town's housing market was closely tied to the health of the local mining industry.
A buyer paid $350,000 for this three-bedroom house in Moranbah in Queensland in September. Picture: realestate.com.au/sold
She said some mining workers bought houses in the town to avoid paying rent, while other workers leased out rental properties from investors to live a fly-in-fly-out lifestyle.
"Moranbah is one of the best places in Australia for house rental returns, as well as Kalgoorlie in Western Australia," Ms Haywood said.
"You can still buy a decent house for about $400,000 and earn $650 to $680 a week."
Other popular Queensland locations included Roma , Ayr , Blackwater and Dysart .
This three-bedroom duplex in Whyalla Stuart in South Australia sold for $370,000 in September. Picture: realestate.com.au/sold
Looking to South Australia, there were 29 suburbs and towns with house prices under $500,000 including Whyalla Stuart , Naracoorte , Port Augusta and Roxby Downs .
In Western Australia, there were 12 suburbs and towns to make the list such as South Kalgoorlie , Boulder , Narrogin and Merredin .
Tasmania had 10 suburbs and towns including George Town , Smithton and Queenstown , while the Northern Territory had eight, including Gillen , Katherine East and Braitling .
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