18 Feb 2025 12 Best Suburbs to Live in Melbourne: A 2025 Guide for First Home Buyers
Choosing the best suburbs to live in Melbourne can feel overwhelming, especially for first-home buyers trying to look for a balance of affordability, lifestyle, and future growth. Melbourne’s suburbs offer a mix of vibrant city living, quiet leafy streets, and family-friendly communities, making it one of the best places to buy a home.
Whether you’re looking for public transport access, top schools, or investment potential, there’s a suburb that fits your needs.
At EverLend, our brokers help first-time buyers find the right home loan by simplifying the process and matching you with the best finance options. With guidance from our expert brokers, buying your first home can be easier than you think!
Let’s explore 12 of Melbourne’s best suburbs for first-home buyers and what makes them great places to call home.
Why Melbourne’s Suburbs Are Perfect for First-Home Buyers
Melbourne’s suburbs continue to be a top choice for first-home buyers, offering a mix of affordability, lifestyle, and future growth. In 2024, Melbourne’s median house price sits at $937,000, while the median unit price is around $614,000 (Domain).
However, outer suburbs like Melton ($496,000) and Werribee ($610,000) remain more accessible for eligible first-home buyers.
With strong population growth and infrastructure projects, experts predict Melbourne’s property prices will rise by 3-5% in 2025 (CoreLogic). Government incentives, like stamp duty concessions and the First Home Owner Grant (FHOG), also make it easier for buyers to enter the housing market.
Melbourne’s suburbs offer a desirable lifestyle, with access to public transport, reputable schools, and ample lifestyle amenities. Whether looking for future capital growth or a stable suburb among families, there’s an option for every first-home buyer.
12 Best Suburbs to Live In Melbourne
With a diverse range of affordable suburbs, future growth areas, and lifestyle-focused neighbourhoods, Melbourne offers plenty of options for first-home buyers. Whether you prefer the city, coast, or a family-friendly suburb, these 12 Melbourne spots offer affordability, transport, and investment potential.
#1 Carlton – Inner-City Convenience with Historic Charm
Carlton is perfect for young professionals and students who want to live close to the city centre. It’s home to iconic shopping strips, period homes, and numerous coffee shops, making it a lively and walkable area. While house prices are high, units and apartments offer a more affordable entry point.
- Median house price: $1.6M (approx)
- Median unit price: $550K (approx)
- Pros: Close to public transport, vibrant lifestyle, strong rental demand
- Cons: High property prices, limited large homes
- Ideal for: Buyers wanting a 20-minute neighbourhood with easy city transport links
#2 Collingwood – Trendy & Well-Connected
Collingwood, home to the iconic Smith Street, is one of Melbourne’s most gentrifying middle-ring suburbs, mixing historic charm with a thriving food, art, and nightlife scene. Its strong rental market makes it a prime investment property hotspot.
- Median house price: $1.4M (approx)
- Median unit price: $650K (approx)
- Pros: Close to the city centre, great cafes and bars, ample lifestyle amenities
- Cons: High rental prices, competitive market
- Ideal for: First-home buyers looking for a vibrant, walkable lifestyle
#3 Caroline Springs – Family-Friendly with Modern Amenities
A stable suburb among families, Caroline Springs is known for its lakeside parklands and well-planned estates. The area offers larger blocks, reputable schools, and plenty of amenities, with Lake Caroline Reserve serving as a popular local landmark. With ongoing developments and future capital growth, it continues to attract first-home buyers seeking affordability and a family-friendly lifestyle.
- Median house price: $680K (approx)
- Median unit price: $500K (approx)
- Pros: Family-friendly, lots of parks, shopping centres
- Cons: Further from the city centre
- Ideal for: Families wanting an affordable property in a growing community
#4 Altona – Beachside Living Without the Price Tag
Altona offers affordable coastal living with a relaxed lifestyle and easy access to the city. Altona Beach, one of Melbourne’s most underrated shorelines, provides stunning bay views and a peaceful escape from the hustle. With great public transport, wide tree-lined streets, and a strong sense of community, it’s an ideal spot for first-home buyers looking for a beachside suburb without the high price tag.
- Median house price: $1M (approx)
- Median unit price: $600K (approx)
- Pros: Beachside location, future long-term growth, strong rental return
- Cons: Higher house prices, rental demand can fluctuate
- Ideal for: Buyers looking for an affordable beachside lifestyle
#5 Melton – One of the Most Affordable Suburbs
Melton is one of Melbourne’s most affordable suburbs, making it a top choice for first-home buyers seeking larger blocks at lower prices. The area is experiencing strong future growth, with new housing developments and infrastructure projects boosting its appeal. A key landmark, the Hannah Watts Park, offers green spaces, playgrounds, and community facilities, making Melton a great option for families looking to settle in a growing suburb.
- Median house price: $496K (approx)
- Median unit price: $420K (approx)
- Pros: Low median price, investment property potential, new infrastructure projects
- Cons: Longer commute to the city centre
- Ideal for: First-home buyers wanting a budget-friendly home
#6 Northcote – A Perfect Blend of Culture and Green Spaces
Northcote is a leafy suburb known for its strong owner-occupier demand, top schools, and vibrant community feel. It offers a mix of Victorian homes and modern apartments, providing a range of options for first-home buyers. A standout landmark, All Nations Park, features walking trails, open green spaces, and a skate park, adding to the suburb’s family-friendly and recreational appeal.
- Median house price: $1.5M (approx)
- Median unit price: $700K (approx)
- Pros: Reputable schools, shopping strips, public transport
- Cons: Higher median house price
- Ideal for: Buyers wanting a desirable lifestyle in an established suburb
#7 Brunswick East – A Hip & Bustling Suburb
Brunswick East is a vibrant middle-ring suburb known for its thriving arts scene, lively cafés, and strong community vibe. Its proximity to the city centre and excellent public transport options make it highly desirable for first-home buyers and investors alike. A standout landmark, CERES Community Environment Park, offers organic markets, gardens, and sustainability workshops, adding to the suburb’s eco-friendly and culturally rich appeal.
- Median house price: $1.3M (approx)
- Median unit price: $700K (approx)
- Pros: Close to major roads, shopping strips, and nightlife
- Cons: Higher living costs
- Ideal for: Buyers wanting a trendy, well-connected suburb
#8 Cranbourne – Growing Suburb with Great Value
Cranbourne is a fast-growing suburb offering affordable housing and strong future growth potential, making it a prime choice for first-home buyers. The area is home to plenty of amenities, shopping centres, and schools, with ongoing new developments improving infrastructure and lifestyle options. A key landmark, the Royal Botanic Gardens Cranbourne, features expansive native gardens, walking trails, and picnic areas, adding to the suburb’s family-friendly and outdoor appeal.
- Median house price: $650K (approx)
- Median unit price: $520K (approx)
- Pros: Affordable house prices, larger blocks, future long-term growth
- Cons: Increasing rental prices due to demand
- Ideal for: Buyers looking for an investment return and future capital growth
#9 Tarneit – A Fast-Growing Western Suburb
Tarneit is a rapidly growing western suburb, known for its modern housing estates, well-planned infrastructure, and strong community feel. With easy access to major roads and expanding public transport options, it has become a popular choice for first-home buyers seeking affordability and convenience. A key landmark, Tarneit Central Shopping Centre, offers a variety of retail stores, dining options, and essential services, making daily life more convenient for residents.
- Median house price: $650K (approx)
- Median unit price: $500K (approx)
- Pros: Future growth potential, great public transport, shopping strips
- Cons: Further from the city centre
- Ideal for: Families looking for a well-connected new suburb
#10 Werribee – A Rising Hotspot for First Home Buyers
Werribee is a rapidly developing suburb offering affordable housing, strong future growth potential, and a wealth of amenities. As a 20-minute neighbourhood test suburb, residents have easy access to schools, shopping centres, parks, and public transport within a short drive. A major highlight is Werribee Open Range Zoo, a popular attraction where visitors can experience African wildlife in an open safari setting, adding to the suburb’s family-friendly and recreational appeal.
- Median house price: $610K (approx)
- Median unit price: $500K (approx)
- Pros: Affordable property prices, proximity to lifestyle locations, strong rental market
- Cons: Traffic congestion on major roads
- Ideal for: Buyers wanting a family-friendly suburb with investment potential
#11 Williams Landing – Modern, Up-and-Coming Suburb
Williams Landing is a modern, master-planned suburb known for its high-quality homes, excellent amenities, and convenient location. As a 20-minute neighbourhood, it offers easy access to shopping centres, parks, and public transport, making it ideal for first-home buyers and families. A key landmark, Williams Landing Shopping Centre, provides a variety of retail stores, dining options, and essential services, adding to the suburb’s convenience and lifestyle appeal.
- Median house price: $800K (approx)
- Median unit price: $600K (approx)
- Pros: Future growth potential, strong owner-occupier demand, reputable schools
- Cons: Higher weekly house rent than surrounding areas
- Ideal for: Buyers wanting a modern, well-connected community
#12 Frankston South – The Best of Suburban & Coastal Living
Frankston South blends coastal living with suburban charm, offering a relaxed lifestyle while still being well-connected to Melbourne’s city centre. The suburb has strong rental demand and excellent investment property potential, making it a great choice for first-home buyers and investors alike. A key landmark, Sweetwater Creek Nature Reserve, features scenic walking trails, native bushland, and tranquil picnic spots, enhancing the area’s natural beauty and outdoor appeal.
- Median house price: $1M (approx)
- Median unit price: $600K (approx)
- Pros: Close to beaches, reputable schools, ample lifestyle amenities
- Cons: High rental prices
- Ideal for: Buyers wanting a coastal home with future growth potential
**Sources: Domain, PRD Newcastle, CoreLogic, REA Group. Note that the house prices fluctuate over time and that the figure we have above is an approximation of current market values. Always double-check with your real estate agent for current figures.
How to Choose a Suburb to Live In
With so many options, the best suburb to live in Melbourne depends on your budget, lifestyle, and future plans. Here are key factors to consider:
- Affordability & House Prices – Compare property values to your budget. Carlton and Northcote have higher price tags, while Melton and Werribee offer more affordable options.
- Transport & Commute – Easy access to capital cities, city views, and public transport can save time and costs. Brunswick East and Collingwood are well-connected.
- Lifestyle & Community – Check for parks, shopping, schools, and cafés. Williams Landing and Caroline Springs are great for families.
- Investment & Growth – Research property price forecasts and rental demand. Tarneit and Cranbourne offer strong rental income potential.
- Vacancy Rate & Demand – A low vacancy rate and high weekly household income mean stronger returns. Brunswick East and Collingwood attract both buyers and investors.
Considering these factors will help you find a suburb that fits your needs and offers future growth potential.
Ready to Buy Your First Home?
Let EverLend help you find the right loan with a free consultation. Call us at 03 7036 3356 or visit EverLend to get started today!
FAQs
What are the most affordable suburbs for first-home buyers in Melbourne?
Suburbs like Melton, Tarneit, and Cranbourne offer affordable property prices under Melbourne’s price threshold for first-home buyers.
Which Melbourne suburbs have the best public transport links?
Carlton, Collingwood, and Brunswick East have excellent city transport links, trams, and train stations nearby.
Are Melbourne’s western suburbs a good investment?
Yes, suburbs like Werribee and Williams Landing are up-market western suburbs with future long-term growth potential.
What types of home loans are available for first-home buyers in Melbourne?
First-home buyers in Melbourne can choose from variable-rate, fixed-rate, interest-only, and low-deposit home loans. Government-backed options like the First Home Guarantee (FHBG) can also help eligible buyers enter the property market with a lower deposit.
What is Melbourne’s rental crisis situation in 2025?
With high rental demand and low vacancy rates, Melbourne’s rental market remains competitive.
Where are Melbourne’s best investment properties?
Northcote, South Yarra, and Glen Waverley offer strong rental return and investment return potential.
Final Thoughts
Buying your first home in 2025 is an exciting step, and choosing the right suburb can make all the difference. Whether you’re after affordability, future growth, or a great lifestyle, Melbourne has plenty of attractive options to suit your needs.
If you’re ready to take the next step, the team at EverLend is here to help. We offer a free consultation to guide you through your home loan options and make the buying process easier. Call us at 03 7036 3356 or visit EverLend to get started today!