Where It’s Cheaper to Rent than Buy

Despite rents continuing to rise, it is still cheaper to be a tenant than a homeowner in most Australian capital cities.

Analysis by Compare the Market shows that Sydney has the biggest gap between the cost of renting and the cost of weekly mortgage repayments. Monthly mortgage repayments are more than $7,700, compared with a median monthly rent of about $3,735 – meaning owners on average are paying 106% more than renters per week.

In Brisbane owners are paying about 75% more than renters, while in Melbourne it is 66%, Adelaide is 63%, the ACT is 55%, Perth is 48% and Hobart is 37%.

Darwin is the only capital city where the difference between renting and buying is not significant, with a difference of just 5%.

Chris Ford from Compare the Market says while on a weekly basis renting might be cheaper than buying, owning delivers other benefits.

“Buying a home allows Australians to build equity over time, while renters may benefit from greater flexibility and lower upfront costs.”