11 Feb 2025 10 Cheapest Suburbs in Melbourne for Budget-Friendly Living

Melbourne is one of Australia’s most desirable cities, but its eye-watering living costs make it tough for property seekers to find affordable housing options. House prices in the city centre and inner suburbs continue to rise, pushing first-home buyers and renters toward more budget-friendly areas.

At EverLend, our mortgage brokers help first-home buyers, investors, and budget-conscious buyers secure the right home loan. From low-deposit loans to fixed-rate mortgages and grants, we’ll find the best option to help you settle down in one of Melbourne’s most affordable suburbs. 

If you’re looking for affordable properties with good public transport options, major shopping centres, and a strong sense of community, this guide is for you. We’ll explore the cheapest suburbs in Melbourne, breaking down median house prices, unit prices, transport connections, and lifestyle factors.

Factors That Make a Suburb Affordable

Before diving into the cheapest suburbs in Melbourne, let’s break down the key factors that keep house prices and rent low. If you’re searching for affordable housing, consider these points:

• Low Median Prices & Affordable Entry Points: The cheapest suburbs have median house prices well below Melbourne’s average. These areas often have older homes, undeveloped land, or lower demand, making them affordable options for first-time buyers and property investors.
• Distance from the City Centre: Many affordable suburbs are in outer suburbs like Melton, Werribee, and Norlane, where land is cheaper and housing is more spacious. Longer commutes can result in lower property prices compared to inner-city and desirable suburb locations.
• Rental Demand & Cheap Rent: Areas with cheap rent often have a high supply of rental properties and fewer high-income renters. Suburbs with older housing stock or less gentrification tend to offer affordable rental prices compared to expensive suburbs.
• Development & Infrastructure Growth: Suburbs undergoing new infrastructure projects (e.g., train stations, roads, or shopping centres) can still have affordable properties before demand pushes house prices up. Some outer suburbs remain affordable despite growth, making them an attractive option for those willing to buy early.
• Cost of Living & Local Amenities: Suburbs with cheaper grocery stores, lower council rates, and fewer premium amenities tend to have lower living costs. Areas with major shopping centres, numerous parks, and local schools still offer a strong sense of community without the premium price tag.

When searching for affordable housing, balancing cheap rent, median prices, and transport connections is key. Now, let’s explore the cheapest suburbs in Melbourne where you can find your next home. 

10 Cheapest Suburbs in Melbourne

Finding affordable housing in Melbourne can be challenging, but some suburbs still offer cheap rent, low median house prices, and great amenities. Whether you’re a first-home buyer, property investor, or renter, these 10 cheapest suburbs in Melbourne provide an affordable price point without sacrificing lifestyle quality.

#1  Melton – The Most Affordable Suburb Near Melbourne

Melton is one of the cheapest suburbs in Melbourne, offering affordable homes and large block sizes. Located 35 km west of the CBD, it has investment potential due to ongoing infrastructure growth. Ideal for first-home buyers and families looking for space without the city centre price tag.

• Median House Price: $468,000 (approx)
• Rental Cost: $360 per week
• Public Transport Options: Melton Station (V/Line) –  approximately 45 min to Southern Cross
• Lifestyle & Community Features: Numerous parks, Woodgrove Shopping Centre, schools, and future transport upgrades

#2  Melton South – Affordable Homes with Excellent Transport Links

Melton South is an affordable and liveable property guide favourite, offering the cheapest houses within walking distance of train stations. It’s an ideal spot for commuters who need fast access to the CBD.

• Median House Price: $450,000 (approx)
• Rental Cost: $370 per week
• Public Transport Options: Melton South Train Station (V/Line) – approximately 45 min to Southern Cross
• Lifestyle & Community Features: Easy access to major shopping centres, schools, and parks

#3  Norlane – Budget-Friendly Living Near Geelong

Norlane is one of the cheapest capital city suburbs within Geelong’s metro area, making it a popular choice for investors and first-home buyers. The suburb is undergoing significant development, increasing its investment potential.

• Median House Price: $455,000 (approx)
• Rental Cost: $350 per week
• Public Transport Options: North Shore Train Station – approximately 60 min to Melbourne
• Lifestyle & Community Features: Waterfront access, new shopping centres, and proximity to Geelong city centre

#4  Corio – An Investment Hotspot in Geelong

Corio offers affordable entry into the real estate market, with low median prices and strong rental demand. It’s an attractive option for buyers looking for affordable housing near Geelong.

• Median House Price: $485,000 (approx)
• Rental Cost: $370 per week
• Public Transport Options: Corio Train Station – approximately 65 min to Melbourne
• Lifestyle & Community Features: Quiet suburb with major shopping centres and schools

#5  Whittington – Affordable Units & Family-Friendly Living

Whittington offers the cheapest houses and unit prices, making it an ideal choice for first-home buyers and renters. It’s close to Geelong’s CBD while still being an affordable suburb.

• Median House Price: $510,000 (approx)
• Rental Cost: $380 per week
• Public Transport Options: Buses to Geelong Train Station (est 10 min)
• Lifestyle & Community Features: Schools, local parks, and affordable living costs

#6  Kurunjang – Large Block Sizes at Low Prices

Kurunjang offers affordable housing options with large plots of land. It’s a quiet suburb perfect for families wanting more space at an affordable price.

• Median House Price: $480,000 (approx)
• Rental Cost: $360 per week
• Public Transport Options: Short drive to Melton Train Station (est 10 min)
• Lifestyle & Community Features: Numerous parks, shopping centres, and schools

#7  Thomson – A Suburb with Growth Potential

Thomson is a hidden gem in Geelong’s real estate market, offering affordable units and cheapest houses close to transport connections.

• Median House Price: $520,000 (approx)
• Rental Cost: $400 per week
• Public Transport Options: Buses to Geelong Train Station (est 10 min)
• Lifestyle & Community Features: Close to major shopping centres and Geelong Waterfront

#8  Dallas – Affordable Housing Near Melbourne’s North

Dallas is an affordable suburb with good transport links to the CBD. It’s a popular choice for first-time buyers looking for a budget-friendly option.

• Median House Price: $520,000 (approx)
• Rental Cost: $390 per week
• Public Transport Options: Upfield Train Station ( est 40 min to Melbourne)
• Lifestyle & Community Features: Shopping centres, schools, and local parks

#9  Melton West – A Suburb for Families & Investors

Melton West offers affordable homes in a family-friendly environment with strong investment potential.

• Median House Price: $500,000 (approx)
• Rental Cost: $380 per week
• Public Transport Options: Melton Train Station ( est 45 min to Melbourne)
• Lifestyle & Community Features: Schools, retail options, and excellent choice of parks

#10  Albanvale – Affordable Living Close to the City

Albanvale is a desirable suburb for buyers looking for affordable entry into Melbourne’s property market while still being close to the CBD.

• Median House Price: $530,000 (approx)
• Rental Cost: $420 per week
• Public Transport Options: Bus to West Footscray & CBD (est 50 min)
• Lifestyle & Community Features: Major shopping centre, schools, and community vibe

These cheapest suburbs in Melbourne offer affordable housing options with great investment potential. If you’re looking for cheap rent, a first home, or an investment, these suburbs provide excellent transport links, community activities, and a strong sense of affordability.

Chat with EverLend

Need help financing your dream home in one of Melbourne’s affordable suburbs? Contact EverLend for expert mortgage advice. Call us at 03 7036 3356 or visit EverLend today!

FAQs

What is the cheapest suburb in Melbourne to buy a house?

Melton is currently the cheapest suburb in Melbourne, with a median house price under $470,000. It offers large block sizes, affordable homes, and strong investment potential.

Is it cheaper to buy or rent in Melbourne’s affordable suburbs?

In many outer suburbs, mortgage repayments can be cheaper than renting, especially with low-interest home loans. Areas like Melton and Norlane offer cheap rent, but buying can provide better long-term value.

What types of home loans are available for first-home buyers?

First-home buyers can access variable rate, fixed rate, low deposit, and government-backed loans. Options like the First Home Guarantee Scheme help buyers enter the market with a 5% deposit.

Are Melbourne’s cheapest suburbs good for investment?

Yes, suburbs like Corio and Dallas offer low entry prices and strong rental demand. Many have new infrastructure projects, increasing their investment potential.

Which cheap suburbs have the best public transport options?

Dallas, Melton South, and Albanvale have train stations and bus connections for easy city access. These excellent transport links make them attractive for commuters and renters.

How can I find the best deals on affordable homes?

Working with a real estate agent or mortgage broker helps you navigate the property market. Look for silent listings, off-market sales, and government incentives to secure the lowest price.

Conclusion

Finding an affordable home in Melbourne is possible, especially in 2025, with so many budget-friendly suburbs to choose from. Whether you’re a first-home buyer, investor, or renter, suburbs like Melton, Corio, and Dallas offer a strong sense of community, excellent transport links, and great investment potential. With property prices rising in some areas, now is a great time to explore your options.

If you’re ready to take the next step, our team at EverLend can help you find the best home loan for your needs. We offer a free consultation to guide you through affordable housing options, loan types, and government incentives. Call us today at 03 7036 3356 or visit EverLend to get started!