Cheapest Suburbs in NSW: 12 Budget-Friendly Places to Call Home in 2025

Finding the cheapest suburbs in NSW feels more important than ever as rising interest rates, tighter lending, and soaring city prices push buyers to the edge. New South Wales offers a mix of coastal charm, regional peace, and vibrant town life—plus plenty of suburbs where affordability meets lifestyle. 

With the property market presenting real challenges in 2025, more Aussies are rethinking where they can actually afford to live. 

This guide is for:

• First-home buyers trying to break into the market
• Downsizers looking for low-maintenance, low-cost living
• Investors chasing better rental yields and growth
• Remote workers seeking lifestyle and affordability

Now, let’s explore the top suburbs in New South Wales, known for affordable housing. 

Top 12 Cheapest NSW Suburbs

Here's our pick of the top 12 cheapest New South Wales suburbs offering lifestyle, space, and potential, all without the hefty price tag.

1. Cootamundra (Riverina / South-West NSW)

Cootamundra is a quiet town steeped in heritage and charm, best known as the birthplace of Sir Donald Bradman. It sits along the Sydney–Melbourne rail corridor, making it more connected than many other rural areas.

The town offers affordable family homes, green parks, and essential services like schools and health facilities. Its community vibe and slower pace attract both families and retirees.

• Median house price: ~$430,000
  
  
• Median unit price: ~$320,000
  
  
• Weekly rent: ~$300
  
  
• Rental yield: ~3.7%
  
  
• Infrastructure development: Rail upgrades, local roadworks, council facility improvements
  
  
• Population growth: ~0.5%
  
  

2. Inverell (Northern Tablelands)

Nicknamed the “Sapphire City,” Inverell blends scenic landscapes with practical infrastructure. It has schools, retail centres, hospitals, and recreational facilities, all within a tranquil country setting.

Inverell’s house prices remain low compared to the rest of the state, while rental demand is slowly growing. It’s a smart choice for buyers wanting space and stability without isolation.

• Median house price: ~$380,000
  
  
• Median unit price: ~$300,000
  
  
• Weekly rent: ~$320
  
  
• Rental yield: ~4.4%
  
  
• Infrastructure development: Broadband upgrades, road improvements, community investment
  
  
• Population growth: ~0.5–1%
  
  

3. Leeton (Riverina)

Leeton is an agricultural hub located in the Murrumbidgee Irrigation Area, offering affordable homes and a strong employment base. It has a welcoming, multicultural population and good schooling options.

The town centre is walkable and features cafes, markets, and retail essentials. With a stable economy and relatively high yields, Leeton is great for entry-level investors and working families.

• Median house price: ~$345,000
  
  
• Median unit price: ~$280,000
  
  
• Weekly rent: ~$330
  
  
• Rental yield: ~5.0%
  
  
• Infrastructure development: Irrigation upgrades, industrial estate expansion
  
  
• Population growth: Stable
  
  

4. Narrabri (North West NSW)

Narrabri is a regional growth area that benefits from infrastructure investment in agriculture, energy, and logistics. The town has solid local amenities, including schools, medical services, and shopping centres.

Its proximity to national parks and job projects makes it appealing for working renters and young families. Narrabri remains one of the highest-yielding regional areas under $400k.

• Median house price: ~$365,000
  
  
• Median unit price: ~$300,000
  
  
• Weekly rent: ~$350
  
  
• Rental yield: ~4.5%
  
  
• Infrastructure development: Renewable energy zones, road upgrades
  
  
• Population growth: ~1%
  
  

5. Gunnedah (North West NSW)

Known for its rich farming land and coal sector jobs, Gunnedah is a service town with schools, healthcare, and strong local employment. It has a friendly community, public parks, and a range of affordable housing options.

Investors will appreciate the consistent rental demand and relative ease of property management. The town is actively expanding industrial areas, adding long-term value.

• Median house price: ~$460,000
  
  
• Median unit price: ~$350,000
  
  
• Weekly rent: ~$370
  
  
• Rental yield: ~4.2%
  
  
• Infrastructure development: Industrial precinct expansion, water infrastructure
  
  
• Population growth: ~1–1.5%
  
  

6. Griffith (Riverina region)

Griffith is one of NSW’s larger inland cities, known for its food production, vineyards, and dynamic regional economy. It combines affordability with strong local infrastructure, including a regional airport, hospitals, and retail centres.

The city’s growing population supports a healthy rental market and future capital growth. Ideal for first-home buyers who want the perks of city life without Sydney prices.

• Median house price: ~$525,000
  
  
• Median unit price: ~$400,000
  
  
• Weekly rent: ~$400
  
  
• Rental yield: ~4.0%
  
  
• Infrastructure development: Airport expansion, healthcare and housing upgrades
  
  
• Population growth: ~1%

First-Home Buyer? We Make It Simple.

If you're eyeing affordable homes under $600k in NSW, we’ll help you access grants, calculate repayments, and choose the right lender for your situation. Our Newcastle mortgage brokers specialise in simplifying the process for first-home buyers entering the property market. Call (02) 4920 6468 or book online at www.mortgagebrokersnewcastle.com.au.

7. Hillvue (Tamworth suburb)

Hillvue is a leafy suburb of Tamworth, offering suburban living with access to city amenities. The area has parks, schools, and shopping centres, attracting families and professionals alike. Housing remains well-priced for first-home buyers, and consistent demand makes it attractive to investors.

With new housing developments and services growing, it’s a suburb with steady upside.

• Median house price: ~$495,000
  
  
• Median unit price: ~$380,000
  
  
• Weekly rent: ~$380
  
  
• Rental yield: ~4.0%
  
  
• Infrastructure development: School expansions, local road improvements
  
  
• Population growth: ~1%
  
  

8. Mount Austin (Wagga Wagga suburb)

Mount Austin is one of Wagga Wagga’s most affordable suburbs, just minutes from the city centre. With access to shopping centres, public transport, and schools, it’s a favourite among younger buyers and renters.

The area is also seeing local investment in healthcare and education. Its price point and yield make it a great buy-and-hold opportunity.

• Median house price: ~$420,000
  
  
• Median unit price: ~$330,000
  
  
• Weekly rent: ~$390
  
  
• Rental yield: ~4.8%
  
  
• Infrastructure development: Health precinct and school upgrades
  
  
• Population growth: ~1.2%
  
  

9. Oxley Vale (Tamworth suburb)

Oxley Vale is a quiet, family-oriented suburb north of Tamworth’s CBD. It features established homes on generous blocks, as well as new housing estates. Residents enjoy nearby schools, medical clinics, and recreational reserves.

It’s a practical choice for buyers looking for solid long-term livability with low upfront costs.

• Median house price: ~$470,000
  
  
• Median unit price: ~$360,000
  
  
• Weekly rent: ~$370
  
  
• Rental yield: ~4.1%
  
  
• Infrastructure development: Park upgrades, improved road links
  
  
• Population growth: ~1%
  
  

10. West Albury (Albury suburb)

West Albury sits right on the NSW–Victoria border, offering scenic views and city-fringe convenience. Residents have quick access to hospitals, schools, and Albury’s CBD, with many properties offering excellent value compared to city prices.

It's suitable for cross-border commuters, health workers, and investors wanting a dual-market edge. Public infrastructure continues to expand in the area.

• Median house price: ~$540,000
  
  
• Median unit price: ~$390,000
  
  
• Weekly rent: ~$410
  
  
• Rental yield: ~3.9%
  
  
• Infrastructure development: Hospital precinct projects, road and retail renewal
  
  
• Population growth: ~1.5%
  
  

11. Wagga Wagga (city-wide)

Wagga is a major regional city with a robust economy driven by defence, education, and healthcare. Suburbs throughout the city remain under $600k, offering value with growth potential. Its rental market is one of the most stable outside metro areas.

First-home buyers love the city feel, while investors enjoy the tenant pool and low vacancy rates.

• Median house price: ~$590,000
  
  
• Median unit price: ~$450,000
  
  
• Weekly rent: ~$420
  
  
• Rental yield: ~3.7%
  
  
• Infrastructure development: Defence housing, university expansion, airport upgrades
  
  
• Population growth: ~1.5–2%
  
  

12. East Maitland (Hunter region)

Just 30 minutes from Newcastle, East Maitland is a fast-growing suburb with schools, shopping centres, and direct train access. It’s one of the last few Hunter suburbs with homes regularly priced below $700k.

Young families are flocking to new developments, and investors see potential in both yield and capital growth. It balances lifestyle and affordability in a rising market.

• Median house price: ~$670,000
  
  
• Median unit price: ~$520,000
  
  
• Weekly rent: ~$500
  
  
• Rental yield: ~3.9%
  
  
• Infrastructure development: New estates, roadworks, expanded education facilities
  
  
• Population growth: ~2%
  
  

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.

What to Know Before Buying in an Affordable NSW Suburb

There’s a lot more to affordable suburbs than just the price tag. Before diving into a home purchase in one of New South Wales's budget-friendly options, it's worth weighing the upsides and trade-offs.

These affordable properties often appeal to buyers chasing a better quality of life, but it’s important to consider your financial situation and long-term goals.

Pros

• Lower housing prices make it easier to enter the market, especially if you're struggling with a deposit.

• These suburbs often feature larger blocks, green spaces, and access to outdoor activities not found near the central business district.

• A strong sense of community and a slower pace of life are typical, which many buyers find refreshing.

• You'll find a wide range of affordable housing options, including affordable houses, rental properties, and even the cheapest houses under $300k.

• Essential amenities like schools, clinics, and a railway station are often still available — just without the inflated costs of a city centre postcode.

• Lower cost of living means more breathing room in your budget month to month.

• Some regions show steady demand, as remote work and lifestyle shifts push people out of expensive suburbs and into more affordable options.

• According to the latest House Price Report, some of these suburbs for houses are outperforming metro markets in rental yield.

Cons

• Distance from a city centre or central business district can mean longer commutes and less access to top-tier jobs.

• Rental market may be smaller, which could limit your tenant pool if buying an investment.

• Rents for houses and overall property prices may not rise as quickly, affecting capital growth.

• Fewer entertainment, dining, and cultural spots compared to popular choice metro suburbs.

• Some areas have limited public transport options, though a local railway station can offset this.

• In some towns, crime rates may be slightly higher — always check local council data or talk to locals.

• Not all locations have high-performing schools or key amenities like major hospitals.

Buying in one of NSW’s attractive options for affordability could mean finally achieving home ownership or smart investing. But like any decision, it should strike a balance between affordability and your lifestyle needs.

Don’t Just Find a Cheap Property — Find the Right Loan

Whether it's a low-deposit loan or an offset account for your first home or investment, we’ll help you find a structure that supports your long-term goals. Our Newcastle mortgage brokers will walk you through the entire loan application process from start to settlement. Call (02) 4920 6468 or learn more at www.mortgagebrokersnewcastle.com.au.

Frequently Asked Questions (FAQs)

What is the cheapest suburb in NSW?

As of 2025, some of the cheapest suburbs in NSW include towns like Leeton, Narrabri, and Inverell, where the housing market remains well below the state average. These areas offer low rental prices and strong potential for first-home buyers entering affordable markets.

What suburbs will boom in 2025 in NSW?

Suburbs with infrastructure growth, new housing estates, and strong public transport links — such as East Maitland, Wagga Wagga, and parts of the Hunter region — are tipped to perform well in the 2025 property market. Rising unit rent, migration from Sydney, and local job growth are key drivers in these growth areas.

What are the undervalued suburbs of Sydney?

Suburbs like Guildford, Wiley Park, and Canley Vale are often labelled as undervalued suburbs of Sydney due to their proximity to the Sydney CBD and relatively low median apartment sale price. These areas appeal to buyers priced out of the east and investors looking for value in the unit market.

What is the cheapest coastal town in NSW?

Towns like South West Rocks, Forster, and Eden are among the cheapest coastal towns in NSW, offering lower house rent and unit rent compared to metro beaches. These seaside communities remain popular for retirees and investors seeking relaxed living without the price tag.

Is buying an investment property in regional NSW worth it?

Yes, many regional towns offer high rental prices relative to purchase cost, making them attractive for investment property buyers. Towns like Narrabri and Griffith show strong yields and lower risk of vacancy in the current housing market.

How do rental prices compare between Sydney and regional NSW?

House rent and unit rent in Sydney are significantly higher than in most regional areas. This affordability gap is pushing renters and buyers toward NSW’s regional property market, where the cost of living is lower.

What’s the outlook for the unit market in 2025?

The unit market is gaining traction, especially in outer Sydney suburbs and regional hubs where median apartment sale price remains competitive. Investors are increasingly targeting units in areas with strong public transport links and low supply.

How can mortgage brokers help when buying into one of NSW's affordable suburbs?

Mortgage brokers can compare lenders and negotiate better rates, helping buyers access tailored financing options in affordable markets. They also guide clients through the loan process, including grants, eligibility, and assessing long-term investment property potential.

What are the available home loans for first-home buyers in NSW?

First-home buyers in NSW can access variable, fixed, or split-rate loans, and may qualify for government assistance like the First Home Buyer Assistance Scheme. Many lenders also offer low-deposit and guarantor home loans, making entry into the property market more achievable.

Wrapping It Up

Finding an affordable place to call home in 2025 doesn’t mean you have to give up on lifestyle, space, or community. Whether you’re buying your first property, downsizing, or investing, these cheapest suburbs in NSW offer plenty of smart options with real potential. 

If you're unsure where to start, our trusted NSW mortgage brokers based in Newcastle are here to help. 

At Mortgage Brokers Newcastle, we offer free consultation and can guide you through the best home loan options that suit your needs and budget. Give us a call at (02) 4920 6468 or visit our website today. Let’s make your property goals happen!