11 Feb 2025 15 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.
In this guide, we’ll explain what makes a suburb truly affordable, and reveal the 15 cheapest suburbs in Melbourne where first-home buyers can get the most value.
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.
- 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.
Now, let’s explore the cheapest suburbs in Melbourne where you can find your next home.
15 Cheapest Suburbs in Melbourne
(Editor’s note: Last updated August 2025)
1. Melton
Melton is consistently one of the most affordable suburbs in Melbourne, with median house prices under $500k. It’s a top choice for first-time buyers due to its growing infrastructure, schools, and shopping amenities like Woodgrove Shopping Centre. The suburb offers a blend of new housing estates and larger blocks, appealing to young families. It’s connected by the Western Freeway and a direct rail line to the CBD, making commutes manageable.
- Median House Price: $470,000
- Average Rental Cost: $375/week
- Lifestyle & Community Features: Parks, Woodgrove Shopping Centre, new infrastructure projects
2. Melton South
Melton South sits next to Melton and shares many of its perks, with the added bonus of having a V/Line train station right in the suburb. It’s attractive for first-home buyers thanks to new estate developments, a family-friendly vibe, and nearby schools. Homes here are priced just around $500k, making it a solid entry point. The proximity to both public transport and the Western Freeway adds to its liveability.
- Median House Price: $500,000
- Average Rental Cost: $390/week
- Lifestyle & Community Features: Close to train station, schools, new housing estates
3. Norlane
Located on the northern edge of Geelong, Norlane offers one of the cheapest entry points for property ownership in the broader Melbourne region. With prices below $500k and access to the Princes Highway and Geelong CBD, it’s a smart pick for budget-conscious buyers. The area has seen growth in retail and infrastructure, yet remains underdeveloped in parts, leaving plenty of potential. It’s also close to beaches, adding lifestyle value.
- Median House Price: $470,000
- Average Rental Cost: $360/week
- Lifestyle & Community Features: Near Geelong CBD, close to Princes Highway, local retail
4. Corio
Another northern Geelong suburb, Corio is a favourite for entry-level buyers and investors. Median prices sit under $500k, and the suburb is well-served by shops, schools, and the Corio Village Shopping Centre. Accessibility via the Princes Freeway makes commuting into Melbourne or Geelong easy. It’s also undergoing steady redevelopment, which adds long-term appeal.
- Median House Price: $488,000
- Average Rental Cost: $375/week
- Lifestyle & Community Features: North Geelong location, Corio Village Shopping Centre
5. Breakwater
Breakwater offers riverside charm just minutes from Geelong’s city centre. It’s small, quiet, and often overlooked, making it a hidden gem for first-home buyers. With prices just above $500k, it gives buyers a slice of suburbia near the Barwon River, parklands, and trails. It’s also close to major employment hubs and transport links.
- Median House Price: $507,500
- Average Rental Cost: $385/week
- Lifestyle & Community Features: Riverside trails, close to Geelong city, quiet lifestyle
6. Werribee
Werribee is one of Melbourne’s most promising growth corridors, with house prices still under $600k. The suburb is home to attractions like Werribee Zoo and Mansion, and it has strong school zones and a direct V/Line connection to the CBD. It balances affordability with livability, especially appealing to families and first-home buyers. Rapid population growth is fueling more development.
- Median House Price: $590,000
- Average Rental Cost: $420/week
- Lifestyle & Community Features: Werribee Zoo, train to CBD, great schools
Ready to buy in one of Melbourne’s cheapest suburbs? Let our Melbourne mortgage brokers at EverLend guide you through pre-approval and match you with the right home loan. First-time buyer? We’ll help you every step of the way. Call us today at 03 7036 3356 for a free consultation.
7. Pakenham
Pakenham sits at the fringe of the southeast growth corridor and is a hot spot for affordable new homes. The suburb is well-connected by rail and freeway, and features several shopping centres, sporting complexes, and schools. For under $600k, first-time buyers can secure large, modern homes. It’s ideal for growing families who want space without sacrificing accessibility.
- Median House Price: $585,000
- Average Rental Cost: $410/week
- Lifestyle & Community Features: Train line, shopping centres, new housing estates
8. Cranbourne
Cranbourne is one of the most established and diverse southeast suburbs, with plenty of affordable housing still available under $610k. It’s packed with amenities—Casey Fields, botanical gardens, schools, and shopping centres. Public transport options and major road links make commutes manageable. Its mix of old and new housing stock offers something for every budget.
- Median House Price: $607,000
- Average Rental Cost: $430/week
- Lifestyle & Community Features: Casey Fields, schools, Cranbourne Park Shopping Centre
9. Tarneit
One of the fastest-growing western suburbs, Tarneit is a modern master-planned community with a family focus. With new schools, shopping hubs like Tarneit Central, and a train station linking directly to the CBD, it’s attractive to first-time buyers. Though prices have climbed, many new developments still offer homes under $650k. Parks and walking trails add lifestyle appeal.
- Median House Price: $650,000
- Average Rental Cost: $450/week
- Lifestyle & Community Features: New estates, Tarneit Central, trains to CBD
10. Dallas
Dallas is an undervalued suburb just 20 km north of Melbourne’s CBD. It has good bus access and is near Broadmeadows station, making it well-connected despite its modest profile. Prices around $500k make it a rare, affordable option close to the city. A multicultural vibe, local shops, and community centres define its character.
- Median House Price: $505,000
- Average Rental Cost: $400/week
- Lifestyle & Community Features: 20km from CBD, multicultural community, bus access
11. Broadmeadows
Once overlooked, Broadmeadows is now gaining traction as a liveable and affordable northern suburb. It has a major shopping centre, public transport options, schools, and is just 16km from the city. For under $570k, buyers can access larger blocks and older homes with potential. Government investment in the area is lifting its appeal.
- Median House Price: $568,000
- Average Rental Cost: $410/week
- Lifestyle & Community Features: Broadmeadows Central, train station, schools
12. Albanvale
Albanvale is tucked quietly in Melbourne’s west, with prices around $625k. It’s a great fit for young families and first-time buyers looking for a calm environment close to shopping and schools. Brimbank Shopping Centre and nearby reserves give it lifestyle points. Its low-density layout makes it feel more suburban than some inner options.
- Median House Price: $625,000
- Average Rental Cost: $430/week
- Lifestyle & Community Features: Near Brimbank Shopping Centre, schools, quiet streets
13. St Albans
St Albans has long been a multicultural hub with excellent transport links, vibrant markets, and affordable homes. First-time buyers are drawn by the strong community, bustling local economy, and houses around the $650k mark. It has its own train station with express city access. There’s a real buzz to the suburb, with continual development.
- Median House Price: $650,000
- Average Rental Cost: $440/week
- Lifestyle & Community Features: Vibrant community, markets, good transport links
14. Lalor
Lalor offers excellent value for its proximity to the CBD and wealth of local amenities. Median prices hover around $700k, but it’s still affordable for many first-home buyers compared to surrounding suburbs. Its food culture, train access, and family-friendly parks are major draws. The suburb continues to grow while holding onto a strong community feel.
- Median House Price: $700,000
- Average Rental Cost: $450/week
- Lifestyle & Community Features: Multicultural food precinct, trains, family parks
15. Mill Park
Mill Park sits in Melbourne’s northeast and offers an appealing mix of affordability and quality of life. While slightly higher in price, it provides large homes, proximity to universities, and shopping hubs like Westfield Plenty Valley. It’s well-serviced by buses and nearby train lines. With strong schools and community services, it’s ideal for families settling long-term.
- Median House Price: $767,000
- Average Rental Cost: $470/week
- Lifestyle & Community Features: Westfield Plenty Valley, schools, established suburb
Sources: Realestate.com.au, Domain, Greater Geelong, Live In Melbourne. Please note that prices tend to change over time. Hence, it’s always best to consult with your real estate agent for the latest property market values.
Want to live in one of Melbourne’s most affordable suburbs? Let EverLend’s experienced Melbourne mortgage brokers find the perfect home loan, be it fixed, variable, or first-home buyer support loans. Start your journey by calling 03 7036 3356 to book a free consultation with us 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.
What suburbs will boom in 2025 in Melbourne?
Several Melbourne suburbs are set to boom in 2025, especially in the city’s outer growth corridors. Areas like Werribee, Tarneit, Pakenham, and Cranbourne are seeing strong population growth, major infrastructure investment, and rising buyer interest. These suburbs offer a mix of affordability and development potential—ideal for both homebuyers and investors.
For a full breakdown, please read our article on the fastest-growing suburbs in Melbourne.
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 Melbourne mortgage brokers 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 to get started!