Melbourne house prices are steady, but buying is still tough. If you’re looking for the cheapest suburbs in Melbourne, check out Melton, Kurunjang, and Broadmeadows.
These suburbs have some of the lowest prices in the city. If interest rates drop, they could become even more affordable. But in the meantime, let’s check out the city’s most affordable suburbs so we know where to look when the time is right.
What’s Happening in Melbourne’s Housing Market?
House prices are expected to rise by 3.5% in 2025 and another 6% in 2026. Demand remains strong, and prices aren’t falling.
If you’re waiting for prices to drop, you might be waiting a while.
Key Market Stats
- Median house price: $943,725
- Median unit price: $610,490
- Annual population growth: +500,000 (2023-2027 forecast)
- Major industries: Finance, tech, healthcare
The 8 Cheapest Suburbs to Buy a House in Melbourne
These suburbs offer the best value for first-home buyers and investors.
| Suburb | Median Price | Why It’s Worth It |
|---|---|---|
| Melton | $470,000 | Family-friendly, far from CBD |
| Kurunjang | $520,000 | Quiet area, close to Melton |
| Broadmeadows | $570,500 | Affordable, near public transport |
| Coolaroo | $540,000 | Close to airport, undervalued |
| Dallas | $538,250 | Near Hume Hwy, good investment |
| Werribee | $609,000 | Green spaces, growing area |
| Hoppers Crossing | $619,444 | Near Tarneit, still affordable |
| Craigieburn | $650,000 | Developing suburb, family-friendly |
The 6 Cheapest Suburbs to Buy a Unit
Units offer a cheaper way to enter the market. Here are the top picks.
| Suburb | Median Unit Price | Why It’s Worth It |
|---|---|---|
| Melton | $373,000 | Quiet suburb, affordable units |
| Werribee | $430,000 | Attractions like Werribee Zoo |
| Tarneit | $454,000 | New development, modern units |
| Craigieburn | $440,000 | Good transport, growing area |
| Pakenham | $475,000 | Scenic area, great for families |
| Carlton | $360,000 | Vibrant area, close to the CBD |
The Cheapest Suburbs Within 10km of the CBD
If you want to stay close to the city, these suburbs offer the best value.
| Suburb | Median Unit Price | Vacancy Rate |
|---|---|---|
| Melbourne CBD | $572,800 | 2.1% |
| Richmond | $570,000 | 0.7% |
These areas have strong demand and steady prices.
Why Are Coolaroo, Tarneit, and Dallas Some of the Cheapest Suburbs in Melbourne?
Coolaroo
- Median House Price: $540,000
- Distance From The CBD: 26 minutes
Coolaroo is one of the most affordable suburbs to rent in Melbourne. Affordability is a significant draw for the neighbourhood, especially for first home buyers and investors priced out of more expensive suburbs.
As a result, Coolaroo, once considered “undervalued,” is now recognized as one of Australia’s best-performing affordable suburbs.
Coolaroo is located 16.8 kilometres from Melbourne’s CBD, close to Melbourne Airport and key arterial routes. Enhanced infrastructure, convenient access to public transportation, major shopping centres, and all levels of schooling make it a desirable choice for property investment.
If you’re looking for cheap apartments for rent in the Melbourne CBD but can’t find the right property, you should consider this suburb instead.
Discover more properties for sale in Coolaroo VIC.
Tarneit
- Median House Price: $650,000
- Distance From The CBD: 36 minutes
Young families are drawn to the area’s educational opportunities. Tarneit has six primary and secondary schools to select from, allowing you to tailor education to your child’s requirements.
In addition, Tarneit is a short 30-50 minute journey to the city and the M1, making for a quick morning commute.
If you’re looking for 1 bedroom apartments for rent in Melbourne for cheap, definitely a great choice to consider amongst the cheapest suburbs in Melbourne.
Discover more properties for sale in Tarneit VIC.
Dallas
- Median House Price: $510,000
- Distance From The CBD: 30 minutes
Dallas is a Melbourne, Victoria, Australia suburb located 16 kilometres north of Melbourne’s central business area.
The City of Hume is its local government area. The typical home price in Dallas is $510,000 while the average unit price is $465,750.
In terms of rental returns, homes in Dallas rent for $348 per week with an annual rental yield of 3.7% and apartments rent for $360 per week with an annual rental yield of 3.6%.
Discover more properties for sale in Dallas VIC.
Melton
- Median House Price: $525,000
- Distance From The CBD: 30 minutes
If you are limited by budget, you can get affordable apartments for rent in Melbourne if you choose Melton. This suburb is 35 kilometres outside the city and should be on your radar.
Melton has the most affordable properties, with median property values of $500,000 (houses) and $362,000 (units).
The neighbourhood has its train station near the airport and has good schools.
As in most Melbourne suburbs, House prices in Melton surged sharply in 2022 but remain reasonable for many purchasers.
Discover more properties for sale in Melton VIC.
Hoppers Crossing
- Median House Price: $620,000
- Distance From The CBD: 42 minutes
Hoppers Crossing is 23 kilometres southwest of the capital’s central business sector. It is the administrative and most populated centre of the city.
The primary mode of transportation is by road, specifically motor vehicles. The Department of Transport has designated hoppers crossing as one of the most car-dependent areas in Greater Melbourne.
As a result, its citizens rely mainly on the city’s extensive network of busy highways.
Despite being an inner-city neighbourhood, hoppers crossing is one of Melbourne’s most important areas to invest in 2022, with an 8.9% increase in property values.
However, even for those looking to buy a home, this area has promise, with a 7.1% growth rate.
Discover more properties for sale in Hoppers Crossing VIC.
Related Articles
- Cheapest houses for sale in Sydney under $500,000
- The 8 best suburbs to invest in Brisbane
- The 8 best suburbs to invest in Melbourne 2022
Methodology
The suburbs included in this guide were determined based on the following factors:
- Median Price Data: Suburbs were initially identified as potentially affordable using median house and unit prices as sourced from reliable real estate platforms (e.g., CoreLogic, Your Investment Property Magazine).
- Growth Trends: Suburbs showing stable or moderate property value growth over the last 12 months were prioritized. This suggests relative affordability compared to areas with rapidly increasing prices.
- Distance to CBD: Suburbs within a reasonable commuting distance of Melbourne’s CBD were considered, balancing affordability and accessibility.
- Rental Market Analysis: Areas with comparatively lower median rental prices and reasonable rental yields were included, signifying potential for affordability for renters.
Important Note: Property markets can fluctuate. It is always recommended that potential renters and buyers conduct their own up-to-date research and consult with real estate professionals to make informed decisions based on their individual needs and budget.
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FAQ Section on The Cheapest Suburbs in Melbourne 2026
What is the most affordable suburb in Melbourne?
Melton is consistently ranked among the cheapest suburbs in Melbourne, with median house prices under $500k. Other affordable areas include Melton South, Norlane, Corio, Breakwater, Werribee, Pakenham, and Cranbourne, making them attractive options for first‑home buyers and budget‑conscious families.
What suburbs will boom in 2026 in Melbourne?
Several suburbs are expected to experience strong growth between 2025 and 2027. Sunshine is emerging as a transport superhub, Frankston offers bayside affordability with new infrastructure, Werribee is part of a major growth corridor, Melton is expanding with large‑scale development plans, and Cranbourne continues to grow as a hub in the southeast.
Where to invest in Victoria in 2026?
The best suburbs in Victoria for property investment through SMSFs include Glen Waverley, Keilor East, Altona North, Footscray, Williams Landing, Mickleham, and Cranbourne. These areas combine affordability, infrastructure projects, and strong rental demand, making them attractive for long‑term investors.
What is the cheapest area to rent in Melbourne?
Melton tops the list of most affordable rental suburbs in Melbourne, followed by Wyndham Vale, Point Cook, Hoppers Crossing, Craigieburn, Cranbourne, Officer, and Thomastown. Thomastown is especially popular thanks to its multicultural community and excellent transport links, including access to Sydney Road and Thomastown Station.