Top 10 best affordable suburbs in Melbourne 2026
Despite being one of Australia’s largest capital cities, Melbourne is one of the more affordable hubs for property, thanks to factors such as more housing supply and less investor activity.
But price isn’t the only consideration when choosing a location. The ‘best’ lower-priced suburb in Melbourne’s suburbs will vary from buyer to buyer. Metrics to consider include sales volumes, price growth, vacancy rates, infrastructure, and proximity to work and amenities.
For our purposes, we’ve used PRD’s Smart Moves: Melbourne report, covering the first half of 2026, to narrow down the top Melbourne suburbs that are still affordable. PRD’s methodology considers suburbs within a 20-kilometre radius of Melbourne’s CBD delivering a “balance between affordability, liveability, and long-term growth”.
Top 10 Melbourne suburbs for affordable houses
Below are the top 10 suburbs in Melbourne for affordable houses, according to PRD, as well as some key information on the three suburbs crowned the best for buyers seeking affordable houses.
Rank | Suburb | Median house price | 12-month price growth |
|---|---|---|---|
1 | St Albans | $720,000 | +9.8% |
2 | Epping | $740,000 | +9.6% |
3 | Lalor | $775,250 | +10.8% |
4 | Sunshine North | $780,000 | +4.7% |
5 | Heidelberg West | $788,000 | -1.5% |
6 | Glenroy | $860,000 | +2.9% |
7 | Maidstone | $882,500 | +3.8% |
8 | Bundoora | $900,000 | +2.9% |
9 | Footscray | $902,000 | -8.4% |
10 | Reservoir | $950,000 | +4.1% |
Source: PRD Smart Moves: Melbourne 1st Half 2026.
St Albans
Located around 16 kilometres from the Melbourne CBD, in the city’s western suburbs, the multicultural and family-oriented suburb of St Albans is well served by shops, especially when it comes to food, with the area boasting a local market. It also offers access to parks, sporting facilities, and public transport, including buses and trains, with the Sunbury Line servicing St Albans Station.
- Median house prices
- Overall median house price: $720,000
- Median price of two-bed houses: $660,000
- Median price of three-bed houses: $705,000
- Median price of houses with four or more beds: $790,000
- Vacancy rate (Mar 2026): 0.8%
- Rental yield (Mar 2026): 3.6%
Epping
Located just under 20 kilometres north of the Melbourne CBD, Epping is a popular area for families. It’s well connected to shops — housing the Epping North Shopping Centre, schools, health and sporting facilities, and is connected to the Melbourne CBD by the Epping train station.
- Median house prices
- Overall median house price: $740,000
- Median price of two-bed houses: $539,000
- Median price of three-bed houses: $702,000
- Median price of houses with four or more beds: $801,000
- Vacancy rate (Mar 2026): 0.7%
- Rental yield (Mar 2026): 4.1%
Lalor
Located in Melbourne’s northern suburbs, around 18 kilometres from the CBD, Lalor is a family-oriented and multicultural suburb connected to schools, shops (including the Lalor Plaza Shopping Centre), and community and sporting facilities, along with easy public transport including access into the city via the Lalor Train Station.
- Median house prices
- Overall median house price: $775,250
- Median price of two-bed houses: $618,500
- Median price of three-bed houses: $761,000
- Median price of houses with four or more beds: $825,000
- Vacancy rate (Mar 2026): 0.9%
- Rental yield (Mar 2026): 3.7%
Top 10 Melbourne suburbs for affordable units
Rank | Suburb | Median unit price | 12-month price growth |
|---|---|---|---|
1 | Maribyrnong | $488,000 | -2.4% |
2 | St Kilda | $490,000 | -7.5% |
3 | Abbotsford | $530,000 | +2.9% |
4 | Hawthorn | $545,000 | -6.0% |
5 | Ormond | $545,500 | -9.0% |
6 | West Melbourne | $550,000 | +2.6% |
7 | Moonee Ponds | $575,000 | -0.9% |
8 | North Melbourne | $580,500 | +12.7% |
9 | Coburg | $590,000 | -9.3% |
10 | Preston | $590,500 | -7.4% |
Source: PRD Smart Moves: Melbourne 1st Half 2026.
Maribyrnong
Located around eight kilometres from Melbourne’s CBD, in the city’s inner-west suburbs, this riverside locality offers plenty of walking and cycling tracks along with shops, schools, health and sporting facilities. It also comes with access to public transport, including bus and tram networks, while train services are available in neighbouring areas.
- Median unit prices
- Overall median unit price: $488,000
- Median price of one-bed units: $337,500
- Median price of two-bed units: $500,000
- Median price of units with three or more beds: $760,000
- Vacancy rate (Mar 2026): 0.9%
- Rental yield (Mar 2026): 6.1%
St Kilda
Nearly six kilometres from Melbourne’s centre, St Kilda sits alongside Port Phillip Bay and boasts Luna Park and the Palais Theatre, in addition to shops, plenty of cafes, restaurants and bars, and schools and sporting facilities. It also offers easy access to trams and buses.
- Median unit prices:
- Overall median unit price: $490,000
- Median price of one-bed units: $400,000
- Median price of two-bed units: $615,000
- Median price of units with three or more beds $1,280,000
- Vacancy rate (Mar 2026): 1.5%
- Rental yield (Mar 2026): 5.9%
Abbotsford
Located just four kilometres from the Melbourne CBD, the inner-city suburb of Abbotsford sits alongside the Yarra River, with plenty of shops, galleries, eateries along with riverside walking and cycling tracks. It’s also well served by the city’s tram, train, and bus networks.
- Median unit prices
- Overall median unit price: $530,000
- Median price of one-bed units: $390,000
- Median price of two-bed units: $600,000
- Median price of units with three or more beds: $1,237,500
- Vacancy rate (Mar 2026): 0.3%
- Rental yield (Mar 2026): 7%
What to consider when looking for an affordable suburb in Melbourne
House and unit prices will of course be among the top considerations for buyers on the hunt for cheap property — whether you’re looking for your forever home or an investment.
Beyond price, though, it’s generally advisable to look at the following factors when comparing Melbourne suburbs:
- Sales volume
- Potential population growth
- Vacancy rates
- Rental yields
- Potential rental growth
- Local infrastructure and amenities
