10 Most Affordable Suburbs in Newcastle NSW for First-Time Buyers in 2025

Finding affordable Newcastle suburbs can feel like a challenge, but they do exist—offering first-home buyers a chance to enter the market without stretching their budget too far. 

Newcastle, NSW, is an ideal place to live, with its coastal lifestyle, strong job market, and growing infrastructure. While some areas have seen rising property prices, there are still suburbs that offer great value, whether you’re after a family-friendly community or a spot close to the city.

If you're planning to buy in one of these suburbs, Mortgage Brokers Newcastle can simplify the home loan process, helping you compare lenders, secure better rates, and access first-home buyer incentives. Their expertise can save time and money, making homeownership more achievable.

Here are the 10 most affordable Newcastle suburbs worth considering right now.

Affordable Newcastle Suburbs

(updated as of October 2025)

1. Beresfield

Beresfield continues to be one of Newcastle's most affordable suburbs. Located northwest of the city, it offers a semi-rural feel with good road and train connectivity via the New England Highway and Beresfield train station.

The area includes older homes on generous blocks, which keeps entry prices lower. Local shops, schools, and sporting facilities provide all the essentials, while future infrastructure improvements could boost long-term growth.

• Median house price: ~$650,000–$700,000
  
  
• Median unit price: ~$420,000–$500,000
  
  
• Weekly rent: ~$500–$550
  
  
• Infrastructure: Proximity to highway upgrades and potential growth in commuter rail services
  
  

2. Tarro

Just west of Beresfield, Tarro remains a sleeper pick for buyers who want more space and lower prices. It’s further from the CBD, but with direct access to the New England Highway and train lines, it offers decent commuting options.

The suburb has a peaceful, semi-rural character, with larger blocks and fewer crowds. It’s ideal for those who want room to grow and don’t mind trading a bit of convenience for better value.

• Median house price: ~$600,000–$650,000
  
  
• Median unit price: ~$350,000–$420,000
  
  
• Weekly rent: ~$480–$520
  
  
• Infrastructure: Road corridor improvements and potential for transit upgrades
  
  

3. Wallsend

Wallsend is a well-established suburb offering a mix of older houses and new developments at more accessible price points. It’s located about 20 minutes from the CBD and has strong road and bus links, making it appealing for both owner-occupiers and investors.

The local shopping village, schools, and community feel make it particularly popular with young families. While some parts are climbing in price, you can still find pockets with houses under $750K.

• Median house price: ~$720,000–$780,000
  
  
• Median unit price: ~$450,000–$520,000
  
  
• Weekly rent: ~$550–$600
  
  
• Infrastructure: Local park upgrades and road improvements near commercial precincts
  
  

4. Jesmond

Jesmond is conveniently located close to the University of Newcastle and Jesmond Central shopping centre, making it attractive to students and young professionals. It has a range of older homes and small units, with many opportunities to renovate or invest.

Its access to public transport and proximity to key employment hubs gives it a solid long-term outlook. The suburb balances affordability with livability, especially for buyers who don’t need a huge block.

• Median house price: ~$700,000–$750,000
  
  
• Median unit price: ~$420,000–$480,000
  
  
• Weekly rent: ~$530–$580
  
  
• Infrastructure: Road corridor works and some mixed-use development proposals

Fast-Track Your First Home in Newcastle’s Affordable Suburbs

Buying your first home shouldn’t be overwhelming. Our Newcastle mortgage brokers simplify the loan process, help you access first-home buyer incentives, and walk you through finance approvals—all tailored to secure your spot in affordable Newcastle suburbs. Start the process now by calling 02 4920 6468 today. 

5. Shortland

Shortland sits northeast of the University of Newcastle and offers good value for money, especially for houses with solid rental appeal. It’s a quiet, residential suburb with nearby parks, wetlands, and walking tracks.

The area appeals to both families and university staff/students, with good access to shopping and schools. As demand increases in surrounding suburbs, Shortland remains a strong option for first-home buyers chasing value.

• Median house price: ~$720,000–$780,000
  
  
• Median unit price: ~$420,000–$500,000
  
  
• Weekly rent: ~$530–$580
  
  
• Infrastructure: Local road improvements and planned green space investments
  
  

6. Maryland

Maryland is a family-friendly suburb located about 25 minutes from Newcastle CBD. It features a range of detached homes on medium to large blocks, often at more accessible price points than neighbouring areas.

There are schools, local shops, and parks, making it ideal for young families. The sense of community and suburban feel without being too remote adds to its appeal.

• Median house price: ~$750,000–$800,000
  
  
• Median unit price: ~$450,000–$500,000
  
  
• Weekly rent: ~$550–$600
  
  
• Infrastructure: Road upgrades and improved bus services in surrounding corridors
  
  

7. Heatherbrae / Tomago (fringe suburbs)

While technically just outside the Newcastle LGA, suburbs like Heatherbrae and Tomago are often considered by first-home buyers due to their proximity and affordability. They offer larger blocks, proximity to industrial and commercial zones (which means job opportunities), and lower median prices. These fringe suburbs provide access to both Newcastle and the Hunter Valley with relative ease.

• Median house price: ~$650,000–$720,000
  
  
• Median unit price: ~$380,000–$450,000
  
  
• Weekly rent: ~$500–$550
  
  
• Infrastructure: Ongoing highway upgrades and industrial expansion projects
  
  

8. Lambton (outer pockets)

Lambton is a desirable suburb, but certain fringe pockets and older homes within the suburb are still within reach for first-home buyers. It offers excellent access to amenities, public transport, and major shopping areas like Waratah Village and New Lambton.

With leafy streets and solid community infrastructure, it presents an opportunity to enter a sought-after suburb if you're willing to buy older stock.

• Median house price: ~$780,000–$820,000 (some fringe properties under $750K)
  
  
• Median unit price: ~$450,000–$520,000
  
  
• Weekly rent: ~$580–$620
  
  
• Infrastructure: Park upgrades and continued investment in transport corridors
  
  

9. New Lambton (fringe edges)

Like Lambton, New Lambton is a high-demand area where older or fringe properties can occasionally dip below $800K. It offers proximity to schools, medical facilities, and shopping, making it an ideal place to grow into.

Buyers who are happy to purchase a fixer-upper or smaller home can secure a spot in one of Newcastle’s more established and well-connected suburbs.

• Median house price: ~$800,000–$880,000 (fringe stock under $750K)
  
  
• Median unit price: ~$480,000–$550,000
  
  
• Weekly rent: ~$600–$650
  
  
• Infrastructure: Road improvements, zoning reviews, and ongoing commercial upgrades
  
  

10. Adamstown Heights

Adamstown Heights sits just outside central Newcastle and offers a balance of accessibility and affordability. The suburb is known for its established homes, green spaces, and good schools.

While many homes push the $800K range, units and smaller dwellings still offer entry points. It’s a smart pick for buyers looking to settle in a long-term location with strong resale value.

• Median house price: ~$780,000–$830,000
  
  
• Median unit price: ~$480,000–$550,000
  
  
• Weekly rent: ~$600–$650

• Infrastructure: Improved access roads, cycleway upgrades, and school investment
  
  
  

Sources: Realestate.com.au, Cotality, Domain, NSW Government, SQM Research. Please note that property prices tend to fluctuate over time; hence, it’s always best to consult with a real estate agent for the latest market values. 

Find a Loan That Fits Your Budget and Lifestyle

Choosing the right home loan is just as important as choosing the right suburb. Our expert NSW Newcastle mortgage brokers help first-time buyers find smart loan options designed for Newcastle's cheapest suburbs, with flexible terms and competitive rates. Call 02 4920 6468 or explore your options at www.mortgagebrokersnewcastle.com.au.

FAQs

What is the cheapest suburb in Newcastle, NSW?

Beresfield and Tarro are among the cheapest suburbs in Newcastle, NSW, with a lower median property price and strong transport links to the city centre. These suburbs offer affordable housing options with good owner-occupier appeal and promising rental yields.

What is the best suburb to live in Newcastle, NSW?

Suburbs like New Lambton and Adamstown Heights are often considered the best to live in Newcastle due to their access to public schools, recreational facilities, shopping centres, and established real estate. They offer a balance of lifestyle and long-term capital growth, making them attractive for both families and professionals.

Are house prices dropping in Newcastle?

While the broader real estate market in NSW has seen fluctuations, Newcastle property prices have remained resilient with steady demand and limited housing supply. Suburbs with strong infrastructure and growth potential are still showing positive trends in median property price and investment return.

Is Newcastle affordable to live in?

Compared to Sydney, Newcastle is more affordable to live in, especially in suburbs with new housing estates and good public transport links. Many areas still offer affordable housing with access to shopping centres and solid investment strategy opportunities for first-time buyers and investors.

What are the types of home loans available to first-time buyers in Newcastle, NSW?

First-time buyers in Newcastle can access a variety of home loans, including fixed-rate, variable, and low-deposit loans, tailored to meet their individual real estate goals. Some may also qualify for government incentives aimed at boosting affordable housing access and supporting owner-occupiers entering the property markets.

What are the cheapest suburbs in NSW?

Beyond Newcastle, some of the cheapest suburbs in NSW include areas in the Hunter Valley and outer western Sydney, which feature lower median property prices and solid rental property demand. Find out more in our guide to the cheapest suburbs in NSW here.

Final Thoughts

Finding an affordable home in Newcastle suburbs in 2025 is still possible, with plenty of great options for buyers. With property prices changing and new opportunities emerging, having expert guidance can make a big difference.

If you're looking to buy, invest, or explore affordable housing options, our experienced team is here to help. Get a free consultation with our mortgage brokers and find the right home loan for your budget. Call 02 4920 6468 or visit  Mortgage Brokers Newcastle today!