Rental Versus Buying in Australia: A Comprehensive Analysis

PropTrack’s recent analysis has brought to light some intriguing insights about the Australian real estate market over the past decade. According to their study, it is generally more economical to rent a house in most major cities than to purchase one. This finding is particularly relevant given the current median house prices in cities like Sydney (almost $1.4 million), Melbourne (above $900,000), and Brisbane (more than $860,000). The analysis considered the forecast cost of renting a property for 10 years versus buying one with a 20 percent deposit and additional expenses like stamp duty and rates. Interestingly, the proportion of properties nationally that are cheaper to buy than rent has increased from one-quarter to one-third since early last year. However, in Victoria, only about 16.6 percent of dwellings are cheaper to buy than to lease, which amounts to around 448,000 homes of the 2.7 million dwellings in the state. This data highlights the dynamic and evolving nature of Australia’s housing market​​​​​​​​.