Home prices have surged dramatically over the past year, forcing potential buyers to either increase their budgets or compromise on the size and location of properties.

The type of property that $400,000 can buy varies greatly across different regions in Australia.

In Inner Sydney, a studio apartment in Randwick is currently listed for about $400,000.

This is exceptional, given the suburb’s median unit sale price of $1,145,000, making such a property a rarity.

Slightly farther out, in the middle ring of Sydney, a one-bedroom, one-bathroom apartment with a car space in Rosehill can be found for about $400,000.

A one-bedroom apartment can be bought in Kellyville Ridge, Sydney, for about $400,000. Source: realestate.com.au

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Moving to the outer suburbs, one can purchase a one-bedroom, one-bathroom apartment with a car space in Kellyville Ridge for the same amount.

However, for those seeking houses on a budget, there are no properties available for $400,000 or less within metro Sydney.

In Melbourne, buying a house for $400,000 is still feasible if you look towards the outer suburbs.

For instance, in Melton South, which is about 45 minutes from the Central Business District (CBD), a three-bedroom, one-bathroom house can be found for about $400,000.

Closer to the city, however, expectations need to be adjusted.

In the middle suburbs, $400,000 could get you a three-bedroom, one-bathroom unit in Noble Park and in the inner suburbs, this budget would suffice for a one-bedroom apartment in Brunswick East.

A three-bedroom unit in Melbourne's Noble Park is affordable on a $400,000 budget. Source: realestate.com.au

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The data indicates that house hunters need to explore the outer suburbs of a city to get more value for their money, as properties become more affordable the further they are from the CBD.

Conversely, those desiring proximity to the city's hustle and bustle must settle for smaller apartments with fewer bedrooms.

In Darwin, buyers can get the most value for $400,000, with options such as a four-bedroom, two-bathroom house in Woodroffe.

There have been four-bedroom houses on the market for about $400,000 in Woodroffe, Darwin. Source: realestate.com.au

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It's also possible to find houses in the outer suburbs of Perth and Brisbane for this budget, though such properties are limited and options are sparse for those unwilling to settle for apartments.

In Canberra, the situation is more challenging as there are no houses available for $400,000 or less throughout the entire city.

This highlights the increasing difficulties faced by home buyers nationwide, making home ownership progressively unattainable for first-time buyers.

Moreover, the lack of new build properties is evident in the current market listings.

Buyers are increasingly getting less for their money as prices continue to rise. Source: realestate.com.au

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New apartment and house developments tend to be more expensive than established properties and are frequently purchased by investors or those looking to downsize.

This trend further compounds the issue for budget-conscious home buyers, limiting their options to older, possibly less desirable properties.

Overall, the housing market's current state necessitates that buyers either extend their financial limits or adjust their expectations regarding property type and location.

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