The most affordable housing pockets across the country have been unveiled in a new report revealing where buyers can find some of the cheapest homes in each city and region.

Despite soaring prices over the past year, Perth remains the most affordable capital city according to the new PropTrack Affordability Hotspots report, with Kwinana in the city's south ranked as the most affordable capital city region nationally.

The report found 41% of regions across Western Australia were considered affordable to households on median incomes, where mortgage repayments don't exceed 25% of gross incomes.

Queensland and the Northern Territory also have a larger portion of regions with better affordability than the rest of the country.

Jump ahead to see the most affordable pockets in each state.

Defined as ABS Statistical Area level 3 (SA3) regions. Source: PropTrack Affordability Hotspots 2024

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Hotspots are ranked based on an Affordability Index score. Regions in the report were broken down into Statistical Area Level 3 (SA3) regions as defined by the Australian Bureau of Statistics. SA3s generally have a population of between 30,000 and 130,000 people and often closely align to large urban Local Government Areas, for example, Geelong.

Perth's Kwinana region offers good affordability for buyers, according to PropTrack. Picture: realestate.com.au

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Despite housing affordability for buyers and renters at record lows, PropTrack senior economist Paul Ryan said the report shines light on the pockets where first-home buyers still have a chance.

“The broad result here that places in Queensland and Western Australia, in particular, are still the most affordable parts of the country is not necessarily surprising,” he said.

“We’re still seeing enormous amounts of price growth in both of those regions.”

But the report offers a “deep dive” into exactly where affordability is “most promising” for every region, giving buyers insight at a time housing affordability is most challenging, he said.

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In Melbourne and Sydney, the most affordable regions are driven by the prevalence of units, especially recently built units, Mr Ryan says.

“It's quite clear that in our most expensive cities those places where development has been allowed has put downward pressure on prices and basically allows your first-home buyer in particular to still be able to get into the market,” he said.

“But in other places like Brisbane, Perth and Adelaide, there are still parts of the cities where there are affordable conditions for buyers to buy houses, which isn't really the case in Melbourne and Sydney.”

Using the PropTrack Housing Affordability Index, the report measures the proportion of homes sold from July 2023 to March 2024 that are affordable to households across the income distribution, within their greater capital city region, spending up to 25% of their pre-tax income on mortgage repayments.

See the most affordable hotspots in:

Western Australia

The report found the most affordable capital city regions are located in Perth’s south, with Kwinana taking out the top spot. 

A median income Perth household can afford 20% of homes sold there over the past year.

It comes despite Perth recording the strongest price growth of any market over the past year.

Coulson & Co Real Estate licensee Michael Coulson, who is based in Kwinana, says there has been a surge in east coast investors post-Covid, drawn by gross rental yields of 5% to 6.5%.

“We’re probably seeing about 80% of sales now going to east coast investors and first-home buyers,” he said.

This freestanding family home in Kwinana’s Bertram is on the market for offers above $599,000. Picture: realestate.com.au/buy

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First-home buyers are driven by Kwinana’s affordability and amenity, with transport and the beach within easy reach, and a mixed offering of older and newer homes, Mr Coulson said.

Queensland

Like Western Australia, Queensland offers a healthy share of housing affordability hotspots. 

Over a third of all regions where a median income household can afford 20% of home sales are in Queensland.

The most affordable Brisbane city areas are in the southern Logan-Beaudesert region, with the pocket of Springwood-Kingston pocket taking out the top spot. A median income Brisbane household could afford one in five homes there.

Local Harcourts agent, Ryan Murphy, said many owner occupiers are moving to the area for its accessibility.

The number of owner-occupier households also gives the region a “homely” feel.

“A lot of neighbours know each other, talk to each other," he told realestate.com.au.

"It's not like one of those suburbs where you enter and it’s just tenants everywhere - not that that’s a good or bad thing - but people really value a very homely neighbourhood.”

New South Wales

Sydney remains Australia’s most expensive city, with the west and south west offering the greatest share of 'cheap' properties for first-home buyers looking to crack the market.

Parramatta is Sydney’s most affordable region, despite a median income Sydney household only affording 9% of home sales there, the PropTrack report found.

Belle Property Parramatta agent Justin Spencer said buyers are flocking from the inner west for better affordability.

“I always ask buyers what brings them out this way and everyone says it’s because they’ve been priced out,” he said.

Huge development and infrastructure investment projects in Parramatta has seen the region transform into Sydney's second CBD. Picture: realestate.com.au

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Boasting easy transport access, and the new Sydney Metro coming soon, the region has shifted from suburbia to high rise living.

“Parramatta’s a second CBD now,” he said.

Victoria

Unusually, Melbourne’s inner city is its most affordable patch, driven by the large number of units, although the city's west also offers affordability for those seeking a freestanding home.

Re-define Real Estate managing director Philip Middlemiss said his CBD agency has been mostly selling former investment properties, and owner-occupiers are moving in.

“We find that 94% of the properties we've sold in the last 12 months have been to people to occupy - it's a massive number for us. And 75% of that are going to be first-home buyers,” he said.

Mr Middlemiss says high rents are spurring more people to buy.

Affordability is greatest in Melbourne's CBD due to a large number of units. Picture: realestate.com.au

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Two-bedroom city apartments without car parks in new complexes with a view are fetching between $700 to $900 in rent per week, he said, yet the average price of properties his agency sold over the last year would be $435,000.

“Those first time buyers that used to live in the suburbs and potentially used to rent and are now going, ‘Well, I'll just buy and save the commute’.”

South Australia

Adelaide’s north region remains the most affordable, with Playfield the cheapest hotspot.

But recent price growth means a median income Adelaide household can afford less than one in 10 homes sold over the past year in the north region of the city.

Ray White sales executive Winston Coxon is seeing a lot of first-home buyers and downsizers move to the “family-friendly” Playfield area for affordability and amenities.

“The north has exploded and is developing,” he said.

“It's still an affordable area as far as prices go at the moment in Adelaide, yet it's right next to a revamped hospital to service that northern corridor.”